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Toyota moving its U.S. headquarters from California to Plano, TX
04-27-2014, 08:44 PM, (This post was last modified: 04-27-2014, 08:47 PM by Miguel.)
#1
Toyota moving its U.S. headquarters from California to Plano, TX
LA Times:

Quote:Toyota Motor Corp. plans to move large numbers of jobs from its sales and marketing headquarters in Torrance to suburban Dallas, according to a person familiar with the automaker's plans.

The move, creating a new North American headquarters, would put management of Toyota's U.S. business close to where it builds most cars for this market.

North American Chief Executive Jim Lentz is expected to brief employees Monday, said the person, who was not authorized to speak publicly. Toyota declined to detail its plans. About 5,300 people work at Toyota's Torrance complex. It is unclear how many workers will be asked to move to Texas. The move is expected to take several years.

Toyota has long been a Southern California fixture. Its first U.S. office opened in a closed Rambler dealership in Hollywood in 1957. The site is now a Toyota dealership. In 1958, its first year of sales, Toyota sold just 288 vehicles — 287 Toyopet Crown sedans and one Land Cruiser. Last year, Toyota sold more than 2.2 million vehicles in the U.S.

The U.S. branch picked Los Angeles for its first headquarters because of proximity to the port complex — where it imported cars — and easy airline access to Tokyo. As Toyota grew, it opened its national sales and marketing headquarters in Torrance in 1982. The complex, built where its parts distribution warehouse was once located, now has 2 million square feet of office space.

But today, about 75% of the Toyota branded vehicles sold in the U.S. are built in America — many of them at plants in Texas, Mississippi and Kentucky.

The automaker won't be the first big company Texas has poached from California.

Occidental Petroleum Corp. said in February that it was relocating from Los Angeles to Houston, making it one of around 60 companies that have moved to Texas since July 2012, according to Texas Gov. Rick Perry.

Perry last month visited the California to recruit companies. The group Americans for Economic Freedom also recently launched a $300,000 advertising campaign in which Perry contends 50 California companies have plans to expand or relocate in Texas because it offers a better business climate.

Like these other companies, Toyota could also save money in an environment of lower business taxes, real estate prices and cost of living.

Frank Scotto, Torrance's mayor, said he had no warning of Toyota's decision. He said he did know that the automaker planned a corporate announcement for Monday.

"When any major corporation is courted by another state, it's very difficult to combat that," Scotto said. "We don't have the tools we need to keep major corporations here."

The mayor said businesses bear higher costs in California for workers' compensation and liability insurance, among other expenses.

"A company can easily see where it would benefit by relocating someplace else," Scotto said.

...The company is well established in the South. Its primary factories are in Kentucky, where it builds the Camry and Avalon; Mississippi, where it builds the Corolla; and Texas, where it builds Tundra and Tacoma pickup trucks. It also has a big engine plant in Alabama. Toyota next year will launch assembly of its first U.S.-built Lexus, the automaker's luxury brand, in Kentucky.

Moving the U.S. corporate headquarters to Texas puts senior management closer to those factories.

Toyota isn't the first automaker to leave Southern California. In late 2005, Nissan announced it was moving its North American headquarters from Gardena to Franklin, Tenn., just outside of Nashville. About 550 employees left for Tennessee; an additional 750 left jobs at Nissan to stay in Southern California.

"The costs of doing business in Southern California are much higher than the costs of doing business in Tennessee," Nissan Chief Executive Carlos Ghosn said at the time. He cited cheaper real estate and lower business taxes as key reasons for the move.

Fritz Hitchcock, who owns several Toyota dealerships in Southern California, said Toyota's decision won't affect local car sales. But he said it represents an "indictment of California's business climate."

http://touch.latimes.com/#section/-1/art...-80033393/



Dallas Morning News:

Quote:Real estate execs say they knew a major employer was looking at sites in Plano.

Commercial real estate firm Jones Lang LaSalle has been representing the company while keeping its identity a secret.

“We knew there was a large deal, but nobody knew who it was,” said Greg Fuller, chief operating officer with Plano-based developer Granite Properties. “It’s great for the area.”

Developers and brokers say the plan is for Toyota to build offices with 1 million to 1.5 million square feet – about the same amount of office space that’s in a downtown Dallas skyscraper.

Brokers say the company has zeroed in on a location adjacent to J.C. Penney’s corporate headquarters near the southwest corner of the Dallas North Tollway and State Highway 121.

That’s the same area where Fedex Office is now building its new 265,000-square-foot U.S. headquarters in the Legacy West complex.

The planned Toyota campus would be almost as big as State Farm Insurance’s huge regional office under construction in Richardson.

It would be the largest such out-of-state move to Legacy business park since J.C. Penney relocated from Manhattan to Plano in the 1980s.

http://www.dallasnews.com/news/local-new...es-say.ece

A big "get" for the Dallas area. I now work about a mile from where they will locate. Wish I had bought a home in the area instead of Dallas (I'm much closer to the new State Farm office in Richardson).

Dallas is ringed by outlying cities that get the bulk of the benefit of these relocations. Houston, on the other hand, is about as big as the entire Dallas-Fort Worth area combined and generally not strung in by other cities. Neither is Fort Worth, which will likely double its geographic size through annexation as the area around it continues to grow.
Reply
04-27-2014, 09:50 PM,
#2
RE: Toyota moving its U.S. headquarters from California to Plano, TX
...and on a further note: Tillie from Texas has relocated to the Twin Cities for the entire week as she is teaching a course, which Buzz is attending! She is tall but not as large as the Dallas/Fort Worth area. Tongue
Reply
04-27-2014, 09:55 PM, (This post was last modified: 04-27-2014, 09:56 PM by Miguel.)
#3
RE: Toyota moving its U.S. headquarters from California to Plano, TX
I have a friend who does corporate training. His name isn't Tillie, but he is tall.


Automotive News

Quote:Despite the deep, creative talent pool in greater Los Angeles, doing business in California has become more expensive for companies and their workers. The Los Angeles metropolitan area has been ranked ninth most-expensive in the United States by Expatistan, whereas the greater Dallas area is 19th.

According to the Tax Foundation, California trails only New York and New Jersey as the worst for complex, non-neutral taxes with comparatively high rates. Esquire magazine ranked Los Angeles as the most-expensive city in America in which to live "well."

Forbes ranked Texas the seventh-best state for business, a measure that factored a No. 1 ranking for business climate and a 23rd-best ranking for business cost. California came in at 39th out of 50 states, with a 36th-place business climate and seventh-worst business cost.

As for employees, the cost of living is 39 percent higher in Torrance than Plano, and housing costs are 63 percent cheaper in Plano, according to bestplaces.net. An equivalent $50,000 salary in Torrance would be $30,608 in Plano.

Plano has also ranked highly in “best places” and “safest cities” ratings conducted by CNN and Forbes.

...After Nissan left Los Angeles, Toyota top executives insisted they would never leave the city.

http://www.autonews.com/article/20140427...ources-say
Reply
04-28-2014, 10:50 PM,
#4
RE: Toyota moving its U.S. headquarters from California to Plano, TX
If Texas secedes from the Union, I may have to seriously consider the tax advantages of moving there. Dodgy

You don't have a tick problem, do you? Confused
Reply
04-28-2014, 11:06 PM,
#5
RE: Toyota moving its U.S. headquarters from California to Plano, TX
Fire ants and crazy ants. Ticks, not so much.
Reply
04-29-2014, 12:13 AM,
#6
RE: Toyota moving its U.S. headquarters from California to Plano, TX
(04-28-2014, 11:06 PM)Miguel Wrote: Fire ants and crazy ants. Ticks, not so much.

I thought that was crazy aunts.
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