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ABOUT THE COMPANY About the Company An Introduction to Toyota South Africa Motors Toyota South Africa Motors (TSAM) was established as an independent company on 26 May 1961, by the late Dr Albert Wessels. A few years later TSAM began manufacturing operations, and is today the largest vehicle manufacturer on the African continent, and the largest vehicle exporter in South Africa. In August 2008 TSAM became a fully owned subsidiary of Toyota Motor Corporation (TMC), and is ranked among the top ten TMC distributors worldwide. TSAM employs 7 934 people and manufactures the Corolla, Hilux, Fortuner, Dyna and Hino models. These models, as well as the Auris, Avanza, Land Cruiser, Prado, Prius, Quantum, RAV4, Ses’fikile, Verso and Yaris, are marketed and sold through 184 dealerships countrywide. TSAM supports a further 22 dealerships in southern Africa – in Botswana, Lesotho, Namibia and Swaziland. The Lexus and Hino brands are also marketed through 16 and 53 dealerships respectively in southern Africa. Toyota has been the overall market leader in South Africa since 1980, and is the country’s largest exporter of built-up vehicles (Corolla, Hilux and Fortuner). South African built Toyota vehicles are being sold in more than 80 countries worldwide. Total sales of Toyota vehicles in South Africa since the formation of the company exceed 3.27 million units. The Corolla is South Africa’s best selling sedan, the Hilux is the country’s best selling pick-up and outright best selling vehicle, and the Toyota Fortuner is the most popular sports utility vehicle in the South African market. Other vehicles, such as the Ses’fikile taxi, continue to dominate their market segments. Manufacturing TSAM’s manufacturing operations are situated in Prospecton, close to Durban. A multi-billion Rand investment programme over the past few years has geared the plant to become fully Figure 1 8 Toyota South Africa Motors Sustainability Report 2010 Cape Town Johannesburg SOUTH AFRICA integrated with TMC’s global production network. It employs the latest manufacturing technologies, production and quality assurance systems. The vehicle supply department is online to members of the dealer network via a sophisticated computer system called e-Toyota which enables them to track orders and keep customers informed of progress. Models manufactured at Prospecton include the Corolla, Hilux, Fortuner, Dyna and Hino. TSAM is responsible for the development of numerous downstream businesses, with more than 50 major manufacturers supplying components to the motor assembly plant. In addition there are many more secondary suppliers providing individual components or raw materials to the component manufacturers. Sales and marketing The marketing operations, Toyota South Africa Trucks (Hino), the National Parts Distribution Centre and the Toyota Academy of Learning is based in Sandton, Johannesburg. TSAM Sales and Marketing provides comprehensive support to 206 dealers in South and southern Africa. A responsible corporate citizen TSAM has taken positive steps to reduce Durban TOYOTA SOUTH AFRICA MOTORS Manufacturing plant in Durban: Corolla, Hilux, Fortuner, Dyna, Hino Marketing office in Johannesburg 184 dealers in SA (+22 in southern Africa) 7 934 employees Vehicles sold through domestic and export markets environmental impacts across all of its activities and operations, and has engaged and involved employees and suppliers in various environmental programmes. The company’s environmental approach stems from TMC’s Guiding Principles, the Corporate Social Responsibility Policy, which defines its contribution to sustainable development, and Global Vision 2020. This defines the imperative of being a responsible member of local and global communities, and the imperative of reducing environmental impacts, particularly in terms of emissions, energy efficiency, water usage and waste reduction. Social investment programmes From its earliest days, TSAM has been directly involved with the communities in which it operates. This is achieved through initiatives by various departments within TSAM, but also on a broader scale through the Toyota Foundation. The Foundation is a joint operation between TMC and TSAM, and this year it celebrates 20 years of contributing to community development. The main thrust of TSAM’s multi-faceted social development programme is education and training. The primary beneficiaries are the communities in which the company operates – mainly in the provinces of Gauteng and KwaZulu-Natal.
Corporate Philosophy TMC has continuously strived to contribute to the sustainable development of society through the manufacturing and provision of innovative and quality products and services that lead the times. The Guiding Principles at Toyota (adopted in 1992 and revised in 1997) reflect the kind of company that TMC seeks to be in light of the unique management philosophy, values and methods that it has GUIDING PRINCIPLES AT TOYOTA 1. Honour the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world. 2. Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in the communities. 3. Dedicate ourselves to providing clean and safe products and to enhancing the quality of life everywhere through all our activities. 4. Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide. 5. Foster a corporate culture that enhances individual creativity and teamwork value, while honouring mutual trust and respect between labour and management. 6. Pursue growth in harmony with the global community through innovative management. 7. Work with business partners in research and creation to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships. THE TOYOTA WAY 2001 Continuous Improvement + Respect for People Guiding Principles at Toyota CSR Policy: Contribution to Sustainable Development Toyota Global Vision 2020 Medium to long-term management plans Company policies Day-to-day business activities TOYOTA CODE OF CONDUCT Figure 2 Figure 3 embraced since its foundation. TMC, together with its consolidated subsidiaries, hopes to contribute to sustainable development through its corporate activities based on understanding and sharing the Guiding Principles at Toyota. Vision and Guiding Principles TSAM’s vision is to develop a company that is globally competitive. This vision is to be achieved through three pillars: domestic market leadership, being a reliable supplier of quality products to the TMC global supply network, and being a profitable operation that is able to fund future growth. TSAM strives continuously to improve systems and technologies to deliver the best quality vehicles to customers, vehicles that meet customers’ needs and their high expectations of what the Toyota brand epitomises. The Guiding Principles at Toyota spell out the unique philosophy by which all TMC operations around the world are conducted. This is based on respect for people and the cultures, customs and laws in each country, on teamwork and the ongoing pursuit of excellence. An important document that was developed out of the Guiding Principles at Toyota is the Corporate Social Responsibility (CSR) policy which spells out TMC’s commitment to sustainable development. This provides a framework for TSAM’s relationships with people, both employees, partners and the communities within which it CHALLENGE We form a long-term vision, meeting challenges with courage and creativity to realise our dreams. KAIZEN We improve our business operations continuously, always striving for innovation and evolution. GENCHI GENBUTSU We practise Genchi Genbutsu, which means going to the source to find the facts to make correct decisions, build consensus and achieve goals as quickly as possible. Continuous Improvement Respect for People ABOUT THE COMPANY operates. It also provides a framework for the development of systems and technologies designed to eliminate harmful environmental impacts and to produce vehicles that lead the way in fuel efficiency, emissions reduction and recyclability. CSR Policy: Contribution towards Sustainable Development In January 2005, Toyota drafted and announced the Contribution towards Sustainable Development, an interpretation of the Guiding Principles at Toyota that takes into consideration Toyota’s relations with stakeholders. This was revised in July 2008 to become the CSR Policy: Contribution toward Sustainable Development to take into account subsequent environmental changes and heightened societal interest in CSR. TMC has shared the statement with its consolidated subsidiaries and is taking relevant action. Toyota also expects business partners to support this initiative and act in accordance with it. The Toyota Way 2001 The Guiding Principles at Toyota reflect the kind of company that Toyota seeks to be. The Toyota Way 2001 clarifies the values and business methods that all employees should embrace in order to carry out the Guiding Principles at Toyota throughout the company’s global activities. continued over the page > The Toyota Way RESPECT We respect others, make every effort to understand each other, take responsibility and do our best to build mutual trust. TEAMWORK We stimulate personal and professional growth, share the opportunities of development and maximise individual and team performances. Toyota South Africa Motors Sustainability Report 2010 9
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