Toyota Said to Plan to Move U.S. Sales Office to Texas

[Purveyor]

Source: Bloomberg

Toyota Motor Corp. (7203) is moving substantial parts of its U.S. headquarters in Torrance, California, to suburban Dallas as the world’s 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, didn’t 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. Toyota’s Prius hybrid has been California’s top-selling model for the past two years and helped secure a leading 22 percent market share. It also represents a victory for Texas Governor Rick Perry, who’s made repeated visits to California to lure businesses to his state with promises of lower taxes and easier regulations.

Toyota has more than California 5,300 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.’s moved its North American headquarters to lower-cost Tennessee in 2006, only 42 percent of employees initially chose to relocate.

Read more: http://www.bloomberg.com/news/2014-04-27/toyota-said-to-plan-to-move-u-s-sales-office-to-texas.html

[oldandhappy]

1. Wonder what Perry offered them.

[Thinkingabout]

2. To elect him president, oops

[TheBlackAdder]

22. Nothing.. Toyota gets to fire senior staff and those close to retirement. Hire new low wage earners.

This is a typical ploy with many companies...

Relocate far enough away to make most of the workforce quite or work up to their severance package.

Many of those that do relocate, who weren't asked to relocate, will soon realize they should have taken the hint and left with the package. After the employee relocates, to keep their job, buys a home and transfers the kids... the company will then find some reason to cut them loose. This will leave the former employee stranded in a new state with no job, a home, his kids moved and little resources... including relocation expenses that the company might have paid.

This cuts the salaries for the company lower, reduces health care offerings, matching social security and other federal and state accounts, such as UI will be much less.

If an employee transfers, and they weren't asked to relocate... they face an uncertain time.

[Lodestar]

23. I have no idea, but doesn't Texas have no state taxes or something like that?

I read that a lot of businesses like Texas's tax structure or rather lack of taxes.

[aggiesal]

3. We're one screwded up society ...

We keep pitting states against states to get the best margin for profit.
How many corporations have left California for cheaper pastures?

Corporations used to covet California, because at one time everyone got
their education paid for, and we had the envy of the world for our education system,
and we had the best and brightest.

Now our education is messed up with no money, we are considered too expensive
and Rick Perry is bribing companies to high-tail it to Texas.

[atreides1]

4. Why not?

Toyota will end up cutting the pay of any employees that move to Texas with the company...that's if they're asked to go!

And with the low education standing in Texas, any one hired will be getting just above minimum wage...which means more profit for share holders.

This isn't the United States...we're living in the 21st Century version of what the Italian and Swiss City States use to be...hell we can't even come together when 26 children are murdered!

[aggiesal]

6. And in the long run ...

I believe it will be more expensive then staying put in California.

[SoapBox]

11. Ya know...I agree.

And gee, just a few thousands of miles further away from Japan.

Did they even talk to the state? Doesn't look like it.

It's about as weird as Boeing moving corporate only to Chicago...that one made no sense (despite them saying it did) other than them getting away from all the production employees.

[progressivebydesign]

28. I feel sorry for the workers that DO go..

when they open their first property tax bill in Texas.

[dkhbrit]

18. Low education standing?

Check your facts. They're moving to Plano or close by. North DFW has very good schools. Why do people continue to make blanket, incorrect statements about Texas?

[pstokely]

19. How many of their current employees will move with them?

They may not want to leave the beaches for no taxes

[kentauros]

45. Because it's easy.

Research is hard.

[TreasonousBastard]

5. Get used to it...

New York, New Jersey, Massachusetts... all of us here in the Northeast used to have cheap hydropower, an educated workforce, access to Europe, and a huge market in the area.

The South came calling with cheap labor, no taxes, free rent and other stuff. Then California came calling with better weather, another educated workforce, access to Asia, and another huge local market.

I don't know what Perry is selling, but he was up here again last week trying to steal another something of ours.

[Sen. Walter Sobchak]

8. California is a very expensive place to push paper

There is a strong business case for California, but not for a back-office operation. The Asian automakers were originally drawn to Southern California for political cover. They can get that in Texas too.

At roughly the time the Asian automakers were establishing their respective California headquarters the Detroit deadbeats were bailing on their SoCal assembly plants. By locating there they could snuggle up with a powerful congressional delegation who didn't like their domestic competitors very much.

[dotymed]

7. The Race to the Bottom continues, unabated.

When will there be some real workers rights legislation passed? Some wealthy asses paying Progressive taxes again.
I live in the South (retired from a good Union in the North of course) and I see how workers are paid.
It is the plantation mentality and our Federal government needs to step up.
IF the minimum wage kept pace with rising costs since the 1970's it would be over $28 an hour.
Pass legislation that "brings our minimum wage up-to-date without the possibility of passing the costs on to consumers. The money would be taken from the outrageous profits realized by screwing Americans. Fair trade not free trade.

[TexasTowelie]

9. Dallas Morning News is saying that it may move sales HQ to Plano.

http://www.dallasnews.com/news/local-news/20140427-sources-toyota-said-to-prepare-to-move-u.s.-sales-headquarters-to-suburban-dallas.ece

[armed_and_liberal]

10. Good news is more Democrats moving to Texas

Perry is digging the GOP's grave in Texas.

[father founding]

12. racist country

Wait until the CEO of Toyota comes to Texas and some cowboy calls him a Gook.

[cyclezealot]

13. Our response.

How about Californians show up in Torrance . They want to abandon the Golden State. Lets have the Golden State abandon them. Better yet, buy US ..

[Psephos]

14. California sucked a lot out of Michigan not that many years ago.

What comes around, goes around, I suppose.

[tofuandbeer]

15. Probably a "taxes" reason. That office is a HUGE part of Torrance.

Honda is also there. I hope they don't decide to move as well.
This could be bad for Southern California.

[AnalystInParadise]

16. Why does it have to be so negative?

If California is the better model, then any workers who are let go will find better jobs then they had, and some people in Texas who did not have job will not get jobs. Oh wait....it's Texas I forgot the fourth unwritten rule, thou shalt never speak well of Texas

[pstokely]

17. Are the designers moving or just some bean counters?

nt

[Sunlei]

20. This is the way they can get rid of some employees. Texas won't care about any pollution either.

Last edited Mon Apr 28, 2014, 01:07 PM - Edit history (1)

perhaps they will use the 'for profit' prison workers or bus in some foreign-visa-work crew.,, who can live in group housing on the company grounds.

We need Federal laws to protect Americans from all the different states.

[Paladin]

21. If there's ever a federal law against uninformed trashing of entire states.....

....you're in trouble. "Visa Mexican work gangs"? Please.

[Sunlei]

29. You're right it's not just Mexico's labor that work in Americas businesses. Though Texas has many

places like Harligen where most all the workers are foreign visa factory workers. Many American business/hospitals/hotels/schools, lots of American businesses import foreign visa workers as a crew.

Also, next to the mexico/texas border about a 10 mile strip is where many of our major appliances, car factories cluster on the Mexican side. That stuff is built by persons who are paid about $7.00 a day. Then the USA has tax free shipping zones, so those products can be 'imported' sold to American consumers.

That's the way it is these days in the USA. part of the reason Republicans, don't want to raise the minimum wage because that federal minimum is tied to our Dof Labor- visa worker pay rate.

I'll edit to foreign visa work crews.

[Keefer]

30. It's the sales headquarters that's moving.

I doubt there's a whole lot of pollution involved.

[Sunlei]

32. what I meant is Ca. has much better anti-pollution standards than Texas for cars.

[Throd]

33. How would that factor into Toyota's decision?

[Sunlei]

35. I don't know.

[snooper2]

24. Thanks Toyota you fucking assholes, Like we already don't have a shortage of housing inventory

Fuck I need to get my house remodeling done ASAP and sell...

So then I can buy...Hard to buy a house when every one that gets listed has five offers in five hours

At least I'm going to get 10-15K for my house more than I would have even four months ago. It's ridiculous!

[tammywammy]

36. It's a phased approach

They'll be moving to Legacy Park Business area over the next couple of years. They'll need to build the facilities and then phase in the move from CA.

[snooper2]

37. thanks, that makes me feel a "little" better

I was just imagining 100's of families looking for homes at the same time


I imagine employees that got the news are checking prices out already. At least they don't have to sell organs to be able to buy a nice house like you have to do in California

[SansACause]

25. I lived in Texas for 3 years.

I can't imagine anyone in California wanting to relocate there. Okay, maybe Austin, but the rest of the state is as redneck as Mississippi.

[progressivebydesign]

27. You know.. even Austin is still Texas.

people I know that moved there, hated it too. Especially musicians that were expected to pay for free, or worse.. for the "honor" of being part of the music scene there.

[Sunlei]

31. Austin is the best part of Texas. Ca. is still way above old painted rock Perry state.

Those republicans who ruled Ca. Gov. for quite a few years sure messed up the Ca. economy big time. Really hurt Ca. ,when Ca. started to fork over state taxpayer money to those 'for profit' prisons. That drought hurts too.

[Paladin]

34. You know what's funny?

I actually prefer the "All Of Texas Sucks Donkey Dicks" attitude, compared to your "All Of Texas Sucks Donkey Dicks---Except For Austin, Which Is The Only Cool Place In The State" post. We Texas DU'ers have developed a bizarre,connoisseur-like appreciation for all the Texas hatred that appears, here. Thanks for your contribution.

[KamaAina]

40. Actually, Houston does not suck donkey dicks, either

or so I have been told.

[Paladin]

41. And compared to what it once was, Austin now DOES suck donkey dicks. (nt)

[snooper2]

38. The difference is our rednecks use the proper tools to do a job because we have a good economy

Mississippi rednecks have to rely on rusty old pieces of iron as hammers

[kentauros]

43. And the myth of "Austin is an island of blue in a sea of red" persists...

Please educate yourself:



http://tumblr.thefjp.org/post/35708791930/mapping-2012-election-votes

[Throd]

44. Wow, according to that map, I live in the reddest county in CA.

Learn something every day.

[kentauros]

46. And yet, by the look of it, it's not very red.

I'd say you live in one of many purple or maroon counties in CA

[progressivebydesign]

26. Right Wing is frothing over this.. BUT. it's the TX taxpayers getting screwed.

Ted Cruz, and the usual assholes, along with their minions, are absolutely over-the-moon over this, and attacking California's "liberal anti-business" policies. What these people NEVER get is that corporations move to anti-worker States so that the TAXPAYERS can foot the bill for doing business. There is a reason why they move, and it's not for the good of the employees.. it's the "bottom line" which truly means "we don't have to pay for things that better the lives of our employees or our community" by moving out of State. They let the taxpayers in TX pay instead.

People from Torrance who have worked there for a long time, are NOT gonna like West Plano, TX (if they even get offered a job there.) Try living in the South Bay of California, and moving into a place like West Plano. Yeah.. beef might be cheaper... but that's about it.

Texas ranks at the bottom with the other Red States in the important ways, and yet.. you always see these round up stories about how TX is such a great place to move, or retire. Most of the Californians I know that moved there, regretted it almost immediately.

[maxrandb]

39. So when do the people of California support their fellow citizens in Torrance

AND STOP FUCKING BUYING TOYOTAS????

Oh, and I'd also make it very fucking clear to Toyota that if California is not good enough for them after 20-30 years of fucking working at their corporate offices, than California isn't good enough to buy their peice of shit cars.

One thing we know for sure...if you look at the wages in Texas...there aren't many Texans that can afford to buy fucking cars.

Talk about corporations shooting themselves in the foot. If they moved because of cheap fucking labor, then they should be made to pay a steep price. If not, it's just another accelerated race to the bottom.

[Dreamer Tatum]

42. People who think anyone who woks in Torrance will miss CA

Have obviously never been to Torrance, or along the 405 corridor.

Torrance is a shithole. The 405 is a nightmare. Those are facts.

[pstokely]

47. don't most of those Toyota employees live in OC

if they decide the move, they'll just be moving from one rich burb to another, but without beaches and consistent 75 degree weather, or they'll just to go Hyundai/Kia, many Nissan employees did not go when they moved to Nashville

[mahatmakanejeeves]

48. Get That Texas Money, Toyota

Get That Texas Money, Toyota

1st Gear: Get That Texas Money, Toyota

For about a decade, the Texas Enterprise Fund has served as the largest "deal-closing" economic development fund for any state in the country, used to lure large businesses to the Lone Star State. As Toyota prepares to move most of its operations there, today we learn just how much they benefitted from the Enterprise Fund, and it's a lot. From the Wall Street Journal:

Texas offered Toyota $40 million to move, part of a Texas Enterprise Fund incentive program run out of the governor's office. At $10,000 a job, it was one of the largest incentives handed out in the decade-old program and cost more per job created than any other large award.

Last year, Texas spent about $6,800 to lure each of 1,700 Chevron Corp. positions to Houston and $5,800 for each of 3,600 Apple Inc. jobs shifted to Austin.

$10,000 per job to the tune of $40 million. It's clear Texas was serious about getting Toyota, and it's probably going to end up as a major economic victory for the state. Texas' lack of corporate and income taxes are good news for the automaker as well.