TOYOTA’s R6.1bn investment at its Durban
plant has made it the latest global vehicle manufacturer to ramp up
spending on local production.
But while celebrating the single biggest investment in the local motor industry, the company has also flagged the need for stable labour relations and better productivity, emphasising that SA produced less than 1% of the 90-million vehicles made worldwide every year.
At an event to mark the conclusion of Toyota SA’s latest investment at its Prospecton, Durban vehicle assembly plant, company CEO Andrew Kirby said that Toyota SA had spent R6.1bn to produce the latest Hilux and Fortuner models. A further R1.7bn was spent by suppliers, while Toyota SA has spent more than R400m on training for new production processes.
Toyota SA’s R6.1bn is the biggest single investment so far in the local motor industry, eclipsing the R6bn announced recently by BMW SA to replace its 3-Series with the X3 model.
Toyota SA chairman Johan van Zyl said the investment was made possible by the 2013-2020 Automotive Production and Development Programme.
The government says the programme has already attracted investments worth nearly R30bn. But with the addition of commitments yet to be spent, the figure is closer to R50bn.
President Jacob Zuma, a guest at the event, said this investment was an important part of developing SA’s overall manufacturing sector, a priority of the state’s industrial policy.
But he said: "Black involvement is most necessary."
Motor companies themselves recognise this and have recently launched initiatives to identify potential black suppliers.
Black participation must be a priority of future government policy, Zuma said. It was not enough that the industry had created tens of thousands of jobs for blacks in vehicle and components manufacturing, he said. The creation and integration of black-owned companies into the components supply chain "must be the next phase of government intervention", he said.
Kirby said the latest investment by Toyota SA had lifted annual capacity output of the Hilux and Fortuner from 120,000 to 140,000.
The plant also builds Corolla and Quest sedans, Quantum taxis and Hino and Dyna trucks. The Hilux and Fortuner, however, accounted for 80% of total plant production.
Export vice-president Bronwyn Kilpatrick said more than 50% of Hilux and Fortuner production would be exported to 74 markets.
Van Zyl said that despite foreign investor confidence in SA, the local motor industry could take nothing for granted and should not deter investment.
Motor industry employers and unions are engaged in three-yearly negotiations on remuneration and conditions.
Previous years’ negotiations have been characterised by strikes and already warnings of confrontations have been given so far.
Van Zyl said: "We have to remain world competitive not only in terms of wages and productivity but also regarding labour stability. I cannot stress enough the importance of engagement and the need to employ dispute resolution as the first and only line of defence rather than resorting to strike action as the solution."
Zuma, however, said there was "a new spirit of collaboration" between labour, employers and the government "to work together for the future of our country".
But while celebrating the single biggest investment in the local motor industry, the company has also flagged the need for stable labour relations and better productivity, emphasising that SA produced less than 1% of the 90-million vehicles made worldwide every year.
At an event to mark the conclusion of Toyota SA’s latest investment at its Prospecton, Durban vehicle assembly plant, company CEO Andrew Kirby said that Toyota SA had spent R6.1bn to produce the latest Hilux and Fortuner models. A further R1.7bn was spent by suppliers, while Toyota SA has spent more than R400m on training for new production processes.
Toyota SA’s R6.1bn is the biggest single investment so far in the local motor industry, eclipsing the R6bn announced recently by BMW SA to replace its 3-Series with the X3 model.
Toyota SA chairman Johan van Zyl said the investment was made possible by the 2013-2020 Automotive Production and Development Programme.
The government says the programme has already attracted investments worth nearly R30bn. But with the addition of commitments yet to be spent, the figure is closer to R50bn.
President Jacob Zuma, a guest at the event, said this investment was an important part of developing SA’s overall manufacturing sector, a priority of the state’s industrial policy.
But he said: "Black involvement is most necessary."
Motor companies themselves recognise this and have recently launched initiatives to identify potential black suppliers.
Black participation must be a priority of future government policy, Zuma said. It was not enough that the industry had created tens of thousands of jobs for blacks in vehicle and components manufacturing, he said. The creation and integration of black-owned companies into the components supply chain "must be the next phase of government intervention", he said.
Kirby said the latest investment by Toyota SA had lifted annual capacity output of the Hilux and Fortuner from 120,000 to 140,000.
The plant also builds Corolla and Quest sedans, Quantum taxis and Hino and Dyna trucks. The Hilux and Fortuner, however, accounted for 80% of total plant production.
Export vice-president Bronwyn Kilpatrick said more than 50% of Hilux and Fortuner production would be exported to 74 markets.
Van Zyl said that despite foreign investor confidence in SA, the local motor industry could take nothing for granted and should not deter investment.
Motor industry employers and unions are engaged in three-yearly negotiations on remuneration and conditions.
Previous years’ negotiations have been characterised by strikes and already warnings of confrontations have been given so far.
Van Zyl said: "We have to remain world competitive not only in terms of wages and productivity but also regarding labour stability. I cannot stress enough the importance of engagement and the need to employ dispute resolution as the first and only line of defence rather than resorting to strike action as the solution."
Zuma, however, said there was "a new spirit of collaboration" between labour, employers and the government "to work together for the future of our country".
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