Heels & Horsepower Magazine

Isuzu updates Minister Ebrahim Patel on its R1.2-billion Gqeberha plant investment

Press Release: Isuzu Motors South Africa

Isuzu Motors South Africa welcomed a high-ranking government delegation in October 2021, led by the Minister of Trade, Industry and Competition (dtic), Ebrahim Patel.

During the Minister’s courtesy visit to the Eastern Cape vehicle manufacturer’s production facilities in Struandale, Gqeberha, the Minister met with President and CEO, Billy Tom and Isuzu senior leadership to discuss key priorities relating to the business.

Patel previously visited Isuzu in 2019, shortly before an announcement that Isuzu would be investing R1.2-billion into its next generation bakkie programme in South Africa for the South African and Sub-Saharan Africa markets. The decision resulted in the security of 1,000 jobs directly at Isuzu’s operations in Gqeberha and across its national and international dealer network, as well as around 25,000 jobs at hundreds of suppliers across the country.

Tom also updated the ministerial delegation on the progress made on the investment, including manufacturing plant upgrades to meet the new vehicle requirements and the state of readiness to launch exciting new Isuzu products into the market. The new Isuzu D-MAX bakkie, which will be launched early in 2022 will include the launch of Isuzu’s next generation trucks – all locally manufactured in Gqeberha.

In addition to the upskilling and training of staff, Isuzu has also embarked on rigorous testing of vehicles to ensure Isuzu’s promise of producing durable, reliable and capable vehicles reengineered for African driving conditions.

“Our focus remains on being able to ensure the sustainability of Isuzu’s operations in South Africa. We are committed to transformation and believe that an inclusive economy is the foundation to economic prosperity for all citizens,” said Tom. 

While no jobs at Isuzu Motors South Africa were lost during the pandemic in 2020 as a result of adjusted shifts, four-day work weeks and a salary freeze for management, Tom said he was looking forward to pre-COVID economic growth in the country. 

President Cyril Ramaphosa joins Toyota South Africa in celebrating Toyota Corolla Cross

Press Release: Toyota South Africa Motors

Toyota South Africa Motors (TSAM) hosted the President of the Republic of South Africa Cyril Ramaphosa at its manufacturing plant in Durban on Tuesday. The President – accompanied by a delegation of public officials, including the Minister of Trade, Industry and Competition Ebrahim Patel had joined Toyota in celebrating the opening of the Corolla Cross production line in Prospecton, KwaZulu-Natal.

TSAM’s newest production line further reaffirms the company’s investment commitment to the South African economy and the local automotive sector. Established some 60 years ago, Toyota in South Africa has grown significantly over the years and now manufactures Hilux, Fortuner, Corolla Quest and Hi-ace at its Prospecton Plant, while selected Hino and Dyna models are produced as SKD or semi-knocked-down assemblies.

In his remarks, President and CEO of TSAM Andrew Kirby noted: “If you tally up the investments we’ve made in this plant spanning the last five years – of which Corolla Cross accounts for R2.6 billion, we arrive at a cumulative figure of over R6.5 billion. So, we are therefore committed to further developing and strengthening our business in South Africa and making a difference in the country, our communities, our suppliers, dealers, customers and of course in own employee’s lives.”

The introduction of the Corolla Cross model has generated a total of 575 new jobs at the TSAM plant while over 1200 direct jobs were created in the component supply base. Another significant focus during the project was to maximise the local content for this model.

This resulted in the localisation of 621 parts with 56 local suppliers – 16 of which are Black-owned. TSAM has also onboarded five new Tier-1 suppliers (all Black-owned) and 12 new Tier-2/3 suppliers. The economic contribution with TSAM’s local suppliers for this project is over R1.4 billion per annum.

To mark the official opening of this significant event for TSAM, President Ramaphosa had initially officiated a ribbon-cutting ceremony – flanked by Andrew Kirby; Imai-san; Nigel Ward; Minister Patel and other regional public officials – before addressing a number of dignitaries and other stakeholders in the automotive industry in the company’s auditorium.

According to Ramaphosa: “I had called upon Japanese carmakers to strengthen their investment in South Africa. A few months later at the second South Africa Investment Conference, Mr Andrew Kirby came up to stage to announce Toyota’s new investment (R2,6 billion)… I am particularly pleased to see that the announcement that was made has led to the creation of so many jobs – a total of 1 775 jobs made through the announcement of the investment [of the Corolla Cross production].”  

The new Corolla Cross is based on the acclaimed Toyota New Global Architecture platform, or simply the TNGA platform. As of August 2021, 32 Toyota and Lexus models are using this platform and now account for approximately 70% of global Toyota sales. From a regional marketing perspective, the Corolla Cross is produced in both right- and left-hand drive variants and is also the first model to be produced en masse on the continent. It will be exported to more than 40 countries in Africa.

Tribute to a global industry giant, the late Dr Johan van Zyl

On Friday 6th August 2021, industry player from around the globe, joined Toyota South Africa bid farewell to one of Africa’s business giants, Dr Johan van Zyl, during a touching celebration of his life and legacy.  

Dr van Zyl began his career with the company in 1993 as Director for Vehicle Sales & Dealer Network. He was appointed President and COO of Toyota South Africa (TSA) in 2002, and President and CEO in 2003. In June 2009, Dr van Zyl was appointed as a Managing Officer, Toyota Motor Corporation(TMC), CEO of Africa Region in April 2013, and Senior Managing Officer in April 2017.

In 2015 he took on the role of President and CEO of Toyota Motor Europe (TME) until his retirement in early 2021. It was noted that he left an indelible mark there too as, under his tenure, sales in Europe passed the one-million mark in 2019 for the first time in 10 years. On his return to South Africa, Dr van Zyl remained chairman of TSA.

He was without a doubt my mentor and confidante and I’m going to miss bouncing ideas off him.

– Andrew Kirby, Dr van Zyl’s successor and current President and CEO of Toyota South Africa

“The Doc”, as he was affectionately known, had an uncanny sense of knowing just what consumers want and he was able to instill this thinking in all his colleagues, which is why he had such a profound impact on the Toyota Family.

But for all his successes in the corporate world, what “The Doc” will be remembered for the most was his humanity – his ability to remember the name of each and every person he came into contact with, his self- deprecating sense of humour that immediately put everyone at ease, and his comprehensive wealth of general knowledge.

Due to the pandemic restrictions, physical attendance at the company’s Sales and Marketing head office was limited to close family, friends and Toyota colleagues, but thanks to technology, close to 7000 from around the globe were able to watch the livestream and playback of the proceedings.

It was a fitting tribute to a truly remarkable captain of industry as all 14 speakers attested to. Andrew Kirby, Dr van Zyl’s successor and current President and CEO of Toyota South Africa, was personally appointed by the Doc.

“I owe my career and many opportunities that I have been given to Johan. He helped me develop and lead me to where I am today. He was without a doubt my mentor and confidante and I’m going to miss bouncing ideas off him.”

Brand Pretorius recalled that the last time he stood at the podium in the Toyota Auditorium was 26 years ago when he was still at the helm of Toyota; then it was for his own farewell, and now it was for farewell of another kind, but a far sadder one – saying goodbye to his lifelong friend. Interestingly, it was Brand that set Johan on the automotive path, having poached him from academia.

“From the first moment I met him I could sense his formidable intellect and integrity. I was also impressed with this sense of attitude, energy, passion and saw some definitive leadership qualities that would lead to greater things. I knew we needed him to be part of the Toyota team. In 1993, we had a vacancy for the Director of Sales and Dealer Network. I recruited him and got him to join Toyota… He did a brilliant job and I was immensely proud of him.”

Brand Pretorius

And true to that prophecy he did scale the heights of automotive excellence, landing the top spot as President and CEO of Toyota Motor Europe (TME) in 2015. His successor, Matthew Harrison recounts that he “will forever remember his leadership and humour. He leaves behind an incredible legacy of his six years in Europe. Under his leadership, we grew the business to over 1 million sales and Toyota became the Number-two passenger car brand for the first time in our history.

He saw the opportunities to partner with government and to grow local component manufacturing

– Ebrahim Patel, Minister of Trade, Industry & Competition

We also led the market in terms of our electrification mix and environmental performance. At the same time, we increased our profitability… We will also never forget his personal engagement in the Brexit negotiations to ensure the best possible outcome for Toyota.”

The Minister of Trade, Industry & Competition, Ebrahim Patel echoed Matt’s sentiments, highlighting how Johan was instrumental in helping to shape the new fit-for-purpose APDP.

“He saw the opportunities to partner with government and to grow local component manufacturing. He just had passion for industrialisation. By 2019, before the pandemic hit, the industry in South Africa had reached record local production and export levels – a tribute to his leadership and his work.”

What was noteworthy is that despite the fact that each speaker touched on a different aspect of their time with the Doc, there was one golden thread – and that was sheer quality of his humanity. Roelf Meyer, summed it up the most appropriately: “Johan had the most unassuming nature – his interactions with people from grass-roots level to presidents was the same. It was a model on how all people should conduct themselves.”

It’s therefore fitting that Andrew Kirby closed off the event with the announcement that in recognition of Dr Van Zyl’s significant contribution to the SA motor industry, the National Association of Automotive Component and Allied Manufacturers (NAACAM) is going to set up a memorial education initiative in his name – the proceeds from the members will be bequeathed to TWIMS (Toyota Wessels Institute for Manufacturing Studies) and will be used as bursaries for deserving students.

Toyota South Africa is also going to establish a Dr Johan van Zyl Scholarship Bursary Endowment Fund to further the much-needed education of previously-disadvantaged South Africans. (In a similar vein, Matthew Harrison also announced that TME would be establishing a foundation in Dr van Zyl’s name to support education and uplift young people; a scholarship in the Doc’s name will likewise be set up in Israel.)

Mercedes-Benz East London Plant starts production of the New Generation C-Class

Following on Mercedes-Benz’s rich heritage of over 6 decades in South Africa, the East London Plant has officially started production of the New Generation C-Class. 

Since the investment announcement of R10 billion in 2018, the East London Plant has undergone numerous Plant upgrades in preparation for the production of the new model. 

At an event commemorating the start of production of the New Generation C-Class on 24 June 2021, Mercedes-Benz Cars announced an additional R3 billion investment into the East London plant. A sure sign of commitment and a concerted effort to revive the economic growth of South Africa as well as the socio-economic development of the East London region.

The launch of this new Mercedes-Benz C-Class, positions Buffalo City and the rest of Eastern Cape to continue its legacy of advanced manufacturing.

– Ebrahim Patel Minister of Trade, Industry and Competition

The R10 Billion investment was utilised for a wide modernisation of the East London Plant, including upgrades to a new Body Shop and additional buildings.

“The launch of this new Mercedes-Benz C-Class, the latest generation to grace the roads of South Africa and the world, positions Buffalo City and the rest of Eastern Cape to continue its legacy of advanced manufacturing. Through the South African Automotive Masterplan, and the Automotive Production and Development Programme (APDP), we have created a platform for investment in the industry, deepening our technological expertise, creating local value chains, and securing jobs,”said Ebrahim Patel Minister of Trade, Industry and Competition,

East London Plant Sustainability

Mercedes-Benz is aware of the impact that its activities and products have on the environment, and the Company is addressing this in a holistic way along the entire value chain. With Ambition 2039, Mercedes-Benz strives for a fully networked and completely CO₂neutral vehicle fleet in less than 20 years, aiming to have plug-in hybrids or all-electric vehicles to make up more than 50% of its sales by 2030.

In support of Ambition 2039, locally, the Mercedes-Benz Plant in East London has embarked on numerous initiatives to help preserve the environment for future generations.

The new paint shop is more energy-efficient, reducing energy consumption per vehicle by 25 percent. The new buildings have been equipped with energy-efficient LED lighting, which uses up to 90 % less energy per lumen output. 

Through the implementation of energy efficiency measures and the adoption of more efficient technologies and processes, the Plant produces an annual saving of over 16 MWh. This is the equivalent of the annual energy usage for the East London Plant body shop and the buildings of the logistics put together.

Additional plant sustainability initiatives include battery storage containers; rainwater recycling with a water storage of 1 Million Litres; green areas which have been installed on the corridors and the roofs as well as soluble labelling which is being utilised on production parts packaging to minimize waste reduction.

From 2022, the Mercedes-Benz East London Plant along with all own Mercedes-Benz Plants will produce CO2-neutral products. This includes more than 30 passenger car and van plants worldwide and is a further step in the implementation of the Ambition 2039.