Toyota Motors Corp. has brought a lawsuit for 6.5 billion rand ($361 millio
n) in a South African court for 2022 flood damages that sh
uttered its plant near Durban, Business Day reported.
The claim against Tra
nsnet SOC Ltd., the KwaZulu-Natal Department of Transport and eThek
wini Municipality has been brought in the high court in Durban by Toy
ota South Africa Motors’ insurer, Tokio Marine & Nichido Fire Insurance.
It alleges that the floods, which closed the Prospecton pl
ant for four months, cost the company about 4.5 billion rand in plant repairs and rehabilitation and more than 2 billion r
nd in business interruption, the newspaper reported. The suit,
which claims interest on the sum, alleges that by failing to maintain waterways and drainage system
s that carried the floodwater, the three defendants shared responsibility for the damage.
See more beautiful photo albums Here >>>
“A successful case on behalf of Toyota could encourage others to seek compensation from municipalities
and state-owned enterprises whose failure to deliver causes them
losses,” Business Day cited a lawyer unconnected to the case.
Immediately after the flood, Toyota predicted a 33% drop in planne
d vehicle production in 2022 and potential sales revenue losses of over 27 billion rand, the newspaper reported.
Prospecton builds the Hilux pickup truck, the Fortuner SUV, Ques
t and Corolla Cross cars, HiAce minibuses and Hino trucks and buses. About half of production is exported, mainly to Europe.
The 2022 KwaZulu-Natal floods and landslides were declared a national disaster and left more than 400 people dead.
Photograph: The Toyota plant after resuming production following flooding, in Durban, South Africa, in 2022. Photo credit: Waldo Swiegers/Bloomberg