Toyota clears the air on insurer's lawsuit over 2022 Durban floods
Toyota South Africa Motors (TSAM) says it has nothing to do with a lawsuit brought by its insurer against several government bodies in connection with the devastating floods that ravaged KwaZulu-Natal in 2022.
The case has been filed by Tokio Marine & Nichido Fire Insurance Co Ltd, the company that covered Toyota's losses after flooding shut down its Prospecton manufacturing plant near Durban in April 2022. The insurer is now going after the eThekwini municipality, the department of transport and Transnet in an effort to recover the payout it made.
This kind of legal move is known as subrogation — when one party steps into the legal rights of another party, typically to pursue a claim or recover losses. The process often involves an insurance company taking over a policyholder's right to sue a responsible third party after paying out a claim.
Toyota, however, has made it clear it's not behind the lawsuit, not funding it and won't see a cent if the insurer wins the case.
'We became aware of the legal proceedings and, with Tokio Marine's approval, reached out to the parties involved to let them know what was coming,' said TSAM in a statement.
With the matter now officially before the courts, TSAM says it won't be commenting any further. Questions about the case, it added, should be directed to Tokio Marine.
The 2022 floods caused widespread damage across the province and forced a temporary shutdown of the Prospecton plant, which is a key production hub for models such as the Hilux, Fortuner, Hiace, Corolla Cross and Corolla Quest.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
6 hours ago
- TimesLIVE
Toyota clears the air on insurer's lawsuit over 2022 Durban floods
Toyota South Africa Motors (TSAM) says it has nothing to do with a lawsuit brought by its insurer against several government bodies in connection with the devastating floods that ravaged KwaZulu-Natal in 2022. The case has been filed by Tokio Marine & Nichido Fire Insurance Co Ltd, the company that covered Toyota's losses after flooding shut down its Prospecton manufacturing plant near Durban in April 2022. The insurer is now going after the eThekwini municipality, the department of transport and Transnet in an effort to recover the payout it made. This kind of legal move is known as subrogation — when one party steps into the legal rights of another party, typically to pursue a claim or recover losses. The process often involves an insurance company taking over a policyholder's right to sue a responsible third party after paying out a claim. Toyota, however, has made it clear it's not behind the lawsuit, not funding it and won't see a cent if the insurer wins the case. 'We became aware of the legal proceedings and, with Tokio Marine's approval, reached out to the parties involved to let them know what was coming,' said TSAM in a statement. With the matter now officially before the courts, TSAM says it won't be commenting any further. Questions about the case, it added, should be directed to Tokio Marine. The 2022 floods caused widespread damage across the province and forced a temporary shutdown of the Prospecton plant, which is a key production hub for models such as the Hilux, Fortuner, Hiace, Corolla Cross and Corolla Quest.
The Citizen
9 hours ago
- The Citizen
Power boost for JAC T9 Hunter Special Edition models
Limited-run double cab will see the turbodiesel engine's power go up from 125 to 144kW. JAC Motors has introduced a T9 Hunter 4×4 Special Edition derivative to celebrate the company's recent record-breaking endurance challenge achievements. The Chinese manufacturer ran an off-the-showroom-floor JAC T9 2.0L CTi double cab around the Gerotek High Speed Oval flat-out for 24 hours. And in doing so, the JAC T9 broke some long-standing records set by the Toyota Hilux and Isuzu KB. The JAC T9 covered a full 4 084km during 24 hours at an average speed of 170.1km/h. Individually numbered 'To celebrate this record-breaking victory, we are producing 24 uniquely branded JAC T9 Hunters that will feature enhanced performance and exclusive comfort features,' says Karl-Heinz Göbel, CEO of JAC Motors South Africa. ALSO READ: JAC T9 shows Chinese bakkies can threaten Hilux and Ranger 'These bakkies will be individually numbered from one to 24 to forever commemorate the impressive milestone that was achieved.' Special edition bakkies are nothing new to South Africa. In fact, almost every manufacturer offers them at some, or other, stage of their products' lifecycle. And I don't have to tell you; they sell like hot cakes. Power bump for JAC T9 Hunter Put a Legend badge on a Hilux, like the soon to be launched Toyota Legend 55. Bring out a Ford Ranger Stormtrak or Thunder, or Mitsubishi Triton Xtreme and the dealers can't enough of them. So, we think the 24 JAC T9 Hunter 4×4 double cabs are going to be snapped up almost immediately despite no pricing being available yet. In standard trim, the JAC T9 delivers 125kW of power and 410Nm of torque. But in the special edition JAC T9 Hunter, the power quoted is up to 144kW and 487Nm. The same 2.0-litre intercooled turbodiesel powertrain is used, as is the tried and tested 8-speed ZF automatic transmission. This is also not the end of the performance offerings from JAC. The second half of 2025 will be a busy time for the company, starting with the launch of their exciting JAC T9 PHEV. As reported in March, the JAC T9 PHEV will be the second plug-in hybrid bakkie to launch locally after the BYD Shark. ALSO READ: Opposition tracker engaged as JAC T9 Hunter pricing emerges Bring on the power game The JAC T9 PHEV swaps-out its current 2.0-litre turbodiesel engine for a 2.0-litre turbo-petrol combined with a 31.2 kWh battery. This battery will power two electric motors. A 150kW/300Nm unit on the front axle and a 150kW/340 Nm unit on the rear axle. The combined output for the JAC T9 PHEV is quoted at 290kW and 670Nm. As to be expected, there are all sorts of expectations that just like the BYD Shark, the JAC T9 PHEV indeed has the goonies to take on the Ford Ranger Raptor on the drag strip. Watch this space!
IOL News
14 hours ago
- IOL News
Toyota files R6. 5 billion lawsuit against KZN government for flood damages
Toyota's Prospecton plant was flooded in the April 2022 floods. | Supplied by Motor Industry Staff Association. Image: Supplied Toyota South Africa Motors has initiated a R6.5 billion lawsuit against the KwaZulu-Natal provincial government, Transnet, and the eThekwini Municipality, claiming damages from the April 2022 floods that severely impacted its Prospecton plant. In summons filed in the Durban High Court, Toyota South Africa Motors Pty Ltd said it had suffered damages to the tune of R6.5 billion. This included costs in excess of R4 billion for repairs and reinstatement work at the storm-impacted plant and R2 billion for business interruption. Transnet, the KZN Department of Transport, and the eThekwini Municipality have been cited as the defendants. Craig Woolley, a director at law firm Norton Rose Fulbright South Africa Inc, which is acting for Toyota, said all three defendants had 'entered an appearance to defend.' In the court papers, Toyota said that the three organisations had failed in their duty to maintain infrastructure and should have known that neglecting such responsibilities could lead to flooding. During the April floods, the structural integrity of the Umlaas Canal and the diversion berm were compromised, leading to stormwater flowing into the Prospecton Industrial Area, where the Toyota plant is situated, causing extensive flooding and damage, read the court papers. It stated that Transnet owned the Umlaas Canal and was responsible for its management and maintenance, as well as the flood risk associated with it. The concrete-lined canal is intended to channel and divert the uMlazi River around the Prospecton Industrial Area. Together with the diversion berm, it forms an integral part of the flood control and prevention mechanism for the Prospecton Industrial Area, it further stated. It said the Department of Transport was responsible for the management and maintenance of the diversion berm, while the municipality owned, managed, and was responsible for the maintenance and control of the stormwater management system for the Prospecton Industrial Area. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The Umlaas Canal, south of Durban, pictured yesterday. The canal was compromised during the April 2022 storm leading to extensive flooding of the Prospection Industrial Area, according to Toyota's court papers. Image: Doctor Ngcobo Independent Newspapers Detailing its court action against each of the defendants, Toyota said Transnet should have known that in the event of the Umlaas Canal and the diversion berm failing to manage this stormwater, the Prospecton Industrial Area was likely to be flooded, resulting in damage to the company's premises and property. It said the defendants failed to ensure that these structures were functioning as required to prevent flooding in the Prospecton Industrial Area. Additionally, it had neglected to carry out regular maintenance on the Umlaas Canal, resulting in structural weaknesses, and failed to repair previous flood damage. It said it fell on the Department of Transport to ensure that the diversion berm and canal were functioning properly and it had failed to do so. It added that the municipality should have known that in the event of the stormwater management system not functioning as required, the area where the plaintiff's business was situated was likely to be flooded. 'As a result of these failures, Toyota was compelled to engage various contractors to repair the damage caused by the flooding and hired specialist engineers to repair the structural damage to the premises, as well as damage to electrical installations, plumbing, air conditioning, and assembly systems.' The company suffered 'damages to fixtures and fittings, office contents, and electronic equipment, and experienced losses due to vehicles being flooded and damaged.' Furthermore, they were unable to conduct business activities during the repair period, leading to additional business interruption losses. 'As a result of the aforementioned issues, Toyota claims to have suffered damages amounting to R6 540 980 194.00, which includes R4 488 642 693.00 for the fair and reasonable costs incurred in the repair and reinstatement of the plaintiff's premises and property and R2 052 337 501.00 for business interruption.' 'The defendants are jointly and severally liable to compensate the plaintiff for the aforementioned amounts, along with interest thereon,' stated the court papers. Ndabe Sibiya, the spokesperson for the KZN Department of Transport, said that MEC Siboniso Duma regarded Toyota as an important stakeholder in the province. 'Respectfully, he does not believe that it will be appropriate at this stage to engage on this matter through the media,' said Sibiya. 'We can only indicate that the cut-off low-pressure system continues to leave a trail of destruction across the province. It has triggered floods, mudslides, and a rise in the water table. Bridges, road infrastructure, and houses have been damaged, costing both the KZN Transport and Human Settlements Departments billions of rands. For instance, in 2022 alone, we needed more than R6 billion to repair roads, and we could only reprioritise R2 billion from our budget,' Sibiya said. eThekwini Municipality spokesperson Gugu Sisilana said the municipality was aware of Toyota's action and had filed a notice to defend. Transnet did not respond to a request for comment by the time of publication. THE MERCURY
