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KZN oods: Toyota warns of delays in deliveries of Hilux and other models Toyota South Africa Motors [TSAM] has suffered extensive damage at its plant

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KZN oods: Toyota warns of delays in deliveries of Hilux and other models Toyota South Africa Motors [TSAM] has suffered extensive damage at its plant south of Durban during the recent fioods in KwaZuluANatal and customers can expect delays in the delivery of locally produced models such as the popular Toyota Hilux. Activities at the plant have been suspended while assessment and clean-up operations take place. In October last year. President Cyril Ramaphosa presided over the official opening of the Corotia Cross hybrid production line at Toyota's plant in Prospecton. The plant also manufactures its Fortuner. Corolla Quest and Hi-Ace models. The damage caused by the natural disaster has impacted Toyota's immediate ability to deliver vehicles. Of the total number of waterdamaged vehicles assessed. about 500 units have passed inspection and will be retailed. The remainder will be scrapped, Toyota said in a statement on Wednesday. The total number of vehicles to be scrapped has not yet been determined. the company told Fin24. Customers whose vehicles were destroyed, will be prioritised. "This will be easierto facilitate with imported CBU [completely built-up] vehicles as these are sourced from other plants. Of course, there is a pipeline for all imported vehicles, but we will try to increase this supply in order to make up for the units lost.\" said Leon Theron. TSAM's senior vice president of sales and marketing. Following floods in KZN in 2017. TSAM put numerous upgrades in place to mitigate future occurrences. These included the installation of pumps and piping within the plant to disperse water as well as maintaining water- drainage channels surrounding the facility. "These countermeasures worked successfully at keeping the flood waters at bay, but were unfortunately no match forthe mass of water that breached the facility when the banks of the Mlazi River broke,' according to TSAM. When widespread unrest and looting broke out in KZN in July this year, Toyota's manufacturing operations were forced to close for more than a week. Exporting vehicles from the plant was impacted, as well as the ability to make deliveries to Gauteng due to the closure of the N 3. The Motor Industry Staff Association (MISA) warned last week that. because of the impact of the oods, including on the Durban port. motorists will now have to wait even longer for imported parts to repairtheir vehicles. SA manufacturersI mood darken after deadly KZN oods A gauge measuring South African manufacturing sentiment dropped the most in nine months in April after the worst flooding in almost three decades left more than 400 people dead. damaged businesses and halted operations at the nation's biggest port. Absa's purchasing managers' index. compiled by the Bureau for Economic Research, dropped to 50.7 from 60 a month earlier. That's the biggest monthly decline and the lowest reading since July. when deadly riots. looting and arson that erupted in the eastern KwaZulu-Natal province disrupted supply chains, industrial output and demand for manufactured goods. The coastal province suffered the heaviest rainfall in at least six decades in Aprii, triggering floods and landslides that washed away roads. bridges. houses and damaged infrastructure at the Port of Durban. sub-Saharan Africa's biggest container hub. KwaZulu-Natal is the secondvbiggest contributor to South Africa's gross domestic product and damage by the oods will run into billions of rands. The impact ofthe oods. declared a national disaster by the government. continues to weigh on the South African economy after causing extensive damage to facilities owned by Toyota and paper company Sappi. It also forced Sasol to declare force majeure on some of its chemicals exports. Factories not directty affected by the flooding probably saw a drop in demand and export sales that likely stemmed from the temporary closing of the harbor, the Johannesburg-based lender said Tuesday in an emailed statement. \"While normal harbor operations resumed after a few days. export deliveries will remain strained for some time due to significant backlogs and limited availability of vessel space,\" Absa said Breakdowns at electricity-generation plants, which forced the state power utility to double the intensity of nationwide outages, also affected manufacturers, the bank said. Despite the monthly decline, the main index has now been above 50 W the level that signals expansion as for nine consecutive months. This suggests conditions in an industry that accounts for 1.3% of gross domestic product are continuing to normalize after stop-start coronavirus lockdown restrictions, global supply chain disruptions and the civil unrest. Purchasing managers appear more upbeat about short-term prospects. with the index tracking expected business conditions in six months' time rising to 55.7 from 55.1. While a decline in oil prices saw the gauge measuring purchasing prices drop from a record high, input costs continue to increase at a rapid pace and could weigh on sentiment. Absa said. Question 1.1 With reference to the case studies, justify how the various process strategies can be used to improve the SCOR model of Toyota and allow them to have a comparative advantage in the market after the recent KZN oods ? Support your answer with appropriate examples. Question 1.2 With reference to the case study. justify how Toyota South Africa can contribute positively towards sustainable environmental practices? Your answer should include the following: 1 Compliance with environmental poiicies. 2 International Organisation for Standardisation (ISO) 14000. 3 3 R's (Recycle. reuse and reduce)

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