Classic example of what happens when government tries to take too much of someone else's achievements.
Goodbye liberal hell hole, hello Rick Perry.
Toyota Said to Plan to Move U.S. Sales Office to Texas
Toyota Said to Plan to Move U.S. Sales Office to Texas - Bloomberg
Goodbye liberal hell hole, hello Rick Perry.
Toyota Said to Plan to Move U.S. Sales Office to Texas
Toyota Motor Corp. (7203)*is moving substantial parts of its U.S. headquarters in Torrance,*California, to suburban*Dallas*as the worlds largest automaker seeks savings from its U.S. sales unit, said people familiar with the matter.
Employees will be informed of the plan tomorrow, said the people, who asked not to be identified disclosing private conversations.*Steve Curtis, a Toyota spokesman, didnt immediately return a call on the matter.
The surprise move is a blow to the Golden State, the biggest U.S. auto market and proponent of the strictest clean-air rules. Toyotas*Prius hybrid*has been Californias top-selling model for the past two years and helped secure a leading 22 percent market share. It also represents a victory for Texas GovernorRick Perry, whos made repeated visits to California to*lure*businesses to his state with promises of lower taxes and easier regulations.
It would be very consequential for*Southern California, said Jack Nerad, executive market analyst for vehicle-price data service Kelley Blue Book in*Irvine, California. There might be some brain drain and tumult for employees, though it should be largely seamless to the consumer. This kind of thing can create some disruption of momentum.
Destination Texas
Toyota has more than 5,300 California employees, most at its Torrance campus in sales, finance, marketing, engineering and product planning. Details on which functions will move and when may be announced as soon as tomorrow, after the employee meeting. When Nissan Motor Co. moved its North American headquarters to lower-cost*Tennessee*in 2006, only 42 percent of employees initially chose to relocate.
Toyota City, Japan-based Toyota may base its new regional sales headquarters in or near Plano,*Texas, said three of the people who asked not to be named as the plan isnt yet public. The majority of Toyotas Torrance operations may move to Texas over a two-year period, the people said.
Lucy Nashed and Felix Browne, spokesmen for Perry, didnt respond to e-mails on the matter.
Perry, in his final year as governor, began airing radio commercials in California during his March swing through the state that highlighted its high taxes.
Perrys Commercials
A year ago, I was here, in California, encouraging companies to look to Texas for expansion and relocation, he said in the ad, paid for by a group called Americans for Economic Freedom. Over the past year and a half, more than 50 California companies have announced plans to expand or relocate in Texas, creating more than 14,000 jobs.
While Texas is home to Toyotas pickup truck plant in*San Antonio*and a*General Motors Co. (GM)*factory in Arlington, the state traditionally hasnt been a center of auto industry activity.
Separately, Toyota said its restructuring the Torrance-based U.S. marketing organization as part of an efficiency push without detailing how many jobs may be eliminated. Some employees are being reassigned to other parts of the company and there is a voluntary exit program for people who choose to leave, Toyota said today in a statement. The revamped marketing unit will begin operating from May 1.
Toyota Earnings
Toyotas decision to scale back in California, where it established operations in 1957, comes as the company expects to report a record 1.87 trillion ($18.9 billion) of net income when it releases fiscal year results next month. Along with rising sales in*North America*and other international markets, Toyotas earnings this year are benefiting from a decline in the value of the yen, which surged in 2011.
Since the company made that forecast, it agreed to a $1.2 billion fine to settle a U.S. Justice Department investigation into how it delayed recalling popular models after complaints of unintended acceleration.
U.S. sales for Toyota last year totaled 2.24 million cars and light trucks, off a record 2.62 million in 2007. Combined sales for the carmakers three brands fell 1.6 percent to 520,997 in the years first three months.
Toyota Motor Sales USA and Toyota Financial Services, based in Torrance, in suburban*Los Angeles*have more than 9,400 U.S. employees. Torrance is home to Toyotas Lexus and Scion lines, as well as its namesake brand.
Additional Toyota units in Torrance include parts and logistics operations to support dealers. The companys Toyota University training center is nearby.
Auto Center
Southern California rivals*Michigan*as a U.S. automotive center. While it lacks large-scale vehicle manufacturing, the region has U.S. sales and marketing headquarters for*Honda Motor Co. (7267), Hyundai Motor Co., Kia Motors Corp., Mazda Motor Corp. and Mitsubishi Motors Corp., along with Toyota. It is also the nations top automotive design center with 14 major studios, the largest concentration in the U.S.
Toyota Financial Services, the biggest auto finance company in the U.S., and Hondas American Honda Finance Co. also in Torrance, makes the region a hub of lending and loans for dealers and car buyers.
Toyota Said to Plan to Move U.S. Sales Office to Texas - Bloomberg