In a near $US100 million deal, Japan’s Toyota Motor Corporation has taken full control of Toyota South Africa from previous majority shareholder Wesco, raising its shareholding from 35.7% to 74.9%, writes Dave Cumming.
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Wesco is the holding company of the heirs of pioneer industrialist Dr Albert Wessels who established the Toyota manufacturing operation in South Africa and it will hold the remaining 25% as a strategic shareholding.
The deal follows the delisting of Toyota on the JSE Securities Exchange last year and the subsequent purchase by Toyota Motor Corporation of its 35.7% share.
Subsequently TMC made it clear it wished to add the South African operation to its global manufacturing and component supply network.
The South African company will produce new generation Corolla models for export later this year and recently commissioned a major new press line and slush moulding line for this purpose as part of the $100 million capital investment programme to be completed this year.
Toyota SA executive chairman Bert Wessels said: “The fact that TMC will be the controlling shareholder of Toyota South Africa will have many positive benefits for the company in terms of becoming an integral part of TMC’s global supply network, with major export contracts.
“The decision by TMC is also very positive in terms of further support for the local motor industry, which has become a significant vehicle and component exporter and earner of foreign exchange in recent years.”
TMC will spell out its plans for the South African operation at a press conference on July 17 which executive vice president Yoshio Ishizaka will attend.
Last year, Toyota achieved sales of 82,738 vehicles in South Africa for a market share of 22.6%, maintaining the number one spot for 22 years in a row since 1981.
