Toyota moving from Cali to Plano, Texas
04-28-14, 10:11 AM
#31
Moderator: LFA, Clubhouse
Ya, this has been in the rumor mill for a couple days now - think this is a great move overall for Toyota - and even better for consumers.
Yep. I don't think most people - especially young people - realize how much money they are wasting on taxes until they leave. I sure didn't. Now, I won't even consider living/working in a state with high or even moderate taxes.
I think you might be mistaking Blue Springs (TMMMS) for Toyota's Texas trucks plant - I don't recall Toyota having trouble hiring for Blue Springs. Blue Springs is Toyota's new-style production facility (more imitating the Motomachi plant I toured in 2011 - much less heavy machinery, more light machinery as an employee assist.) AFAIK, the slow start in Mississippi was due to Toyota taking a long time to figure out what to build at Blue Springs, not an employment problem.
As a quick comment, it's actually lower-skilled, less-educated (but not entry level) labor that is difficult to move. Highly-skilled, educated and experienced labor is quite easy to move because those types of people are more willing to move and companies are more willing to pay more to increase applicant supply. Toyota ran into trouble in Texas because the type of non-entry-level, adaptive skillset worker they were looking for didn't exist at the price point they wanted. This contrasted TMMK (Kentucky - which I would consider more 'deep South' than Texas) where job applicant supply was so strong that much of the production line actually had college degrees.
The right employees: You have a much greater chance of finding the right employees (especially if you need a skilled or specially educated workforce) in or close to large urban centres. The large urban centres are also more likely to have the institutions that will educate the workforce you are looking for. Toyota Mississippi had a hard time at first finding employees because the right people with the right skills were just not available in the deep South.
As a quick comment, it's actually lower-skilled, less-educated (but not entry level) labor that is difficult to move. Highly-skilled, educated and experienced labor is quite easy to move because those types of people are more willing to move and companies are more willing to pay more to increase applicant supply. Toyota ran into trouble in Texas because the type of non-entry-level, adaptive skillset worker they were looking for didn't exist at the price point they wanted. This contrasted TMMK (Kentucky - which I would consider more 'deep South' than Texas) where job applicant supply was so strong that much of the production line actually had college degrees.
Last edited by gengar; 04-28-14 at 10:19 AM.
04-28-14, 10:16 AM
#32
Lexus Test Driver
04-28-14, 10:42 AM
#34
Bestplaces.net said that the cost of living for employees is 39 percent higher in Torrance than in Plano, and housing costs are 63 percent lower in Plano.
04-28-14, 11:09 AM
#35
Guest
Posts: n/a
I have been fortunate enough to visit some of the campuses in Torrence...It is official and people are shocked.
http://www.autonews.com/article/2014...tions-in-texas
This really a big shakeup as Toyota is considered one of the smartest companies in the world. For them to take the risk of moving from Cali to Texas really speaks volumes and might really have a much larger trickle effect. The South is booming with auto companies with lower costs and lower taxes.
http://www.autonews.com/article/2014...tions-in-texas
This really a big shakeup as Toyota is considered one of the smartest companies in the world. For them to take the risk of moving from Cali to Texas really speaks volumes and might really have a much larger trickle effect. The South is booming with auto companies with lower costs and lower taxes.
Toyota to consolidate most U.S. operations in Texas
Sales, finance, manufacturing, engineering to be housed at HQ near Dallas
Mark Rechtin Twitter RSS feed
Automotive News
April 28, 2014 - 1:45 pm ET
LOS ANGELES -- Toyota Motor Corp. will consolidate its far-flung U.S. operations into a single campus in Plano, Texas, with a targeted move-in completion date of late 2017, the automaker said today.
Following a week of rumor regarding the relocation of Toyota’s sales and marketing operations based near Los Angeles came confirmation of a much larger-scale relocation of nearly all Toyota’s U.S. processes and operations to the suburb north of Dallas.
The move will affect 2,000 positions at Toyota Motor Sales U.S.A., in Torrance, Calif., 1,000 employees of Toyota Financial Services, in Torrance; 1,000 employees of Toyota Motor Engineering & Manufacturing North America in Erlanger, Ky.; and some employees of Toyota Motor North America based in New York, the automaker said in a statement.
The only operation that is not relocating is the Toyota Technical Center in Ann Arbor, Mich., which is in its own growth mode and will absorb the direct-procurement duties from TEMA’s Kentucky operations.
“We’re looking at bringing together, for the first time in our 57-year history, four headquarters affiliates into one unified North American team,” said Julie Hamp, Toyota’s chief communications officer. “We believe the advantages will be better for our customers and dealers, the career development for our associates, and allow us to vastly increase our ability to compete.”
The move was announced to a small stunned group of Toyota executives during a hastily scheduled lunchtime meeting Friday. The rest of the staff was notified this morning.
As part of the relocation plans, Toyota will offer all full-time employees and their spouses an expenses-paid site visit to Plano, as well as a lump-sum relocation payment should they choose to relocate, a Toyota official said.
After moving from its existing headquarters, Toyota will continue to have about 2,300 employees in California and 8,200 employees in Kentucky.
Although Toyota is taking an “everyone is invited” stance for the relocation, officials admitted that there likely will be some headcount attrition from employees who do not wish to move.
The automaker also will be consolidating certain overlapping functions that will now be shared between the different branches of North American operations. Although a final decision has yet to be made on which functions will be consolidated, departments under consideration include information services, human resources, legal, accounting and communications.
The move will occur in stages as Toyota’s new campus is being built, in the style of Apple’s new sprawling campus in Silicon Valley. The first moves, involving those working most closely on the company’s redesign and move details, will begin this fall. The second wave, encompassing the overlapping functions due for consolidation, will begin in December 2015. The rest of the affected Toyota Motor Sales and TEMA employees will move in early 2017, while Toyota Financial Services will move in late 2017.
Sales, finance, manufacturing, engineering to be housed at HQ near Dallas
Mark Rechtin Twitter RSS feed
Automotive News
April 28, 2014 - 1:45 pm ET
LOS ANGELES -- Toyota Motor Corp. will consolidate its far-flung U.S. operations into a single campus in Plano, Texas, with a targeted move-in completion date of late 2017, the automaker said today.
Following a week of rumor regarding the relocation of Toyota’s sales and marketing operations based near Los Angeles came confirmation of a much larger-scale relocation of nearly all Toyota’s U.S. processes and operations to the suburb north of Dallas.
The move will affect 2,000 positions at Toyota Motor Sales U.S.A., in Torrance, Calif., 1,000 employees of Toyota Financial Services, in Torrance; 1,000 employees of Toyota Motor Engineering & Manufacturing North America in Erlanger, Ky.; and some employees of Toyota Motor North America based in New York, the automaker said in a statement.
The only operation that is not relocating is the Toyota Technical Center in Ann Arbor, Mich., which is in its own growth mode and will absorb the direct-procurement duties from TEMA’s Kentucky operations.
“We’re looking at bringing together, for the first time in our 57-year history, four headquarters affiliates into one unified North American team,” said Julie Hamp, Toyota’s chief communications officer. “We believe the advantages will be better for our customers and dealers, the career development for our associates, and allow us to vastly increase our ability to compete.”
The move was announced to a small stunned group of Toyota executives during a hastily scheduled lunchtime meeting Friday. The rest of the staff was notified this morning.
As part of the relocation plans, Toyota will offer all full-time employees and their spouses an expenses-paid site visit to Plano, as well as a lump-sum relocation payment should they choose to relocate, a Toyota official said.
After moving from its existing headquarters, Toyota will continue to have about 2,300 employees in California and 8,200 employees in Kentucky.
Although Toyota is taking an “everyone is invited” stance for the relocation, officials admitted that there likely will be some headcount attrition from employees who do not wish to move.
The automaker also will be consolidating certain overlapping functions that will now be shared between the different branches of North American operations. Although a final decision has yet to be made on which functions will be consolidated, departments under consideration include information services, human resources, legal, accounting and communications.
The move will occur in stages as Toyota’s new campus is being built, in the style of Apple’s new sprawling campus in Silicon Valley. The first moves, involving those working most closely on the company’s redesign and move details, will begin this fall. The second wave, encompassing the overlapping functions due for consolidation, will begin in December 2015. The rest of the affected Toyota Motor Sales and TEMA employees will move in early 2017, while Toyota Financial Services will move in late 2017.
04-28-14, 11:13 AM
#37
Lexus Champion
Join Date: Apr 2011
Location: CA™
Posts: 3,018
Likes: 0
Received 0 Likes
on
0 Posts
Toyota to Establish New North American Headquarters
http://pressroom.toyota.com/releases...adquarters.htm
http://pressroom.toyota.com/releases...adquarters.htm
Manufacturing, Sales and Marketing, Corporate and Financial Services Headquarters to Unify in New, Shared Campus in Plano, Texas
Toyota Technical Center in Michigan to Expand as Part of Increased Investment in Engineering Capabilities
Toyota today announced that it is establishing a new headquarters in North Dallas (Plano), Texas for its North American operations in a move designed to better serve customers and position Toyota for sustainable, long-term growth.
Within the next three years, Toyota’s three separate North American headquarters for manufacturing, sales and marketing, and corporate operations will relocate to a single, state-of-the-art campus in Plano. Toyota’s North American finance arm also plans to move its headquarters to this new shared campus. Altogether, these moves will affect approximately 4,000 employees.
At the same time, Toyota will expand the Toyota Technical Center (TTC) in Michigan to accommodate the relocation of direct procurement from Erlanger, Ky., to its campus in York Township near Ann Arbor. This expansion is part of an increased investment in engineering capabilities and will accommodate future growth in product development.
The transition to Plano from three current headquarters locations – affecting approximately 2,000 employees at Toyota Motor Sales, U.S.A., Inc. (TMS) in Torrance, Calif.; about 1,000 employees at Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA) in Erlanger, Ky.; and certain employees at Toyota Motor North America (TMA) in New York, N.Y. – will begin with initial small groups this summer. However, the majority of these employees will not move until construction of Toyota’s new headquarters is completed in late 2016 or early 2017. Toyota Financial Services (TFS) is not expected to transition to Plano from its current headquarters in Torrance, Calif., until 2017, which will affect around 1,000 employees.
Jim Lentz, who was named Toyota’s first chief executive officer for the North America Region in 2013, said: “With our major North American business affiliates and leaders together in one location for the first time, we will be better equipped to speed decision making, share best practices, and leverage the combined strength of our employees. This, in turn, will strengthen our ability to put customers first and to continue making great products that exceed their expectations. Ultimately, enabling greater collaboration and efficiencies across Toyota will help us become a more dynamic, innovative and successful organization in North America. This is the most significant change we’ve made to our North American operations in the past 50 years, and we are excited for what the future holds.”
In support of the communities in California and Kentucky, Toyota also announced a $10 million philanthropic commitment to provide continued funding for local non-profits and community organizations in these states over a five-year period beginning in 2017, over and above existing commitments.
The establishment of a new headquarters builds upon previous efforts by Toyota to enhance regional autonomy, self-reliance and responsibility. While the sales and marketing, manufacturing and corporate business units will retain their responsibilities and operating names, Toyota expects that new cross-functional teams will identify and execute on ways to serve the broader North American organization.
Toyota will construct a new, environmentally-sustainable campus facility in Plano, which is expected to take two or more years to construct after groundbreaking in the fall of 2014. Until the new campus facility is complete, initial small groups of employees will work from a temporary location in the Plano area.
Toyota will also build a new facility on TTC’s York campus (subject to final approval of state and local incentives) to accommodate approximately 250 direct procurement positions currently based at TEMA in Erlanger.
In addition, about 300 production engineering positions based in Erlanger will be relocated to a new facility to be built at Toyota Motor Manufacturing Kentucky (TMMK) in Georgetown, Ky., while approximately 1,000 TEMA administrative positions will transition to Plano.
Toyota’s 10 manufacturing plants in the U.S. will not be impacted by these changes. Also, the following Toyota units will not be impacted at this time:
-Toyota regional field offices and Lexus area offices
-Operating units in Canada, Mexico and Puerto Rico
-Toyota Financial Service’s regional offices, sales offices, service centers and its bank
-Calty Design Research facilities
-Toyota InfoTechnology Center
-Toyota Racing Development
-AirFlite Inc.
-Logistics Services Field Locations
-Distribution centers
After moving from its existing headquarters, Toyota will continue to have approximately 2,300 employees in California and 8,200 employees in Kentucky. This includes 750 new jobs being added at TMMK for production of the Lexus ES, which begins in 2015. Toyota will also continue to maintain offices in the New York City area and Washington, DC.
The move will not impact Toyota’s relationship with Gulf States Toyota, Inc. (GST), a private distributor of Toyota vehicles based in Houston, Texas.
Toyota Financial Services (TFS) is a service mark used to refer to a number of entities, including Toyota Motor Credit Corporation (TMCC), Toyota Financial Savings Bank (TFSB), and Toyota Motor Insurance Services, Inc. (TMIS).
Toyota Technical Center in Michigan to Expand as Part of Increased Investment in Engineering Capabilities
Toyota today announced that it is establishing a new headquarters in North Dallas (Plano), Texas for its North American operations in a move designed to better serve customers and position Toyota for sustainable, long-term growth.
Within the next three years, Toyota’s three separate North American headquarters for manufacturing, sales and marketing, and corporate operations will relocate to a single, state-of-the-art campus in Plano. Toyota’s North American finance arm also plans to move its headquarters to this new shared campus. Altogether, these moves will affect approximately 4,000 employees.
At the same time, Toyota will expand the Toyota Technical Center (TTC) in Michigan to accommodate the relocation of direct procurement from Erlanger, Ky., to its campus in York Township near Ann Arbor. This expansion is part of an increased investment in engineering capabilities and will accommodate future growth in product development.
The transition to Plano from three current headquarters locations – affecting approximately 2,000 employees at Toyota Motor Sales, U.S.A., Inc. (TMS) in Torrance, Calif.; about 1,000 employees at Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA) in Erlanger, Ky.; and certain employees at Toyota Motor North America (TMA) in New York, N.Y. – will begin with initial small groups this summer. However, the majority of these employees will not move until construction of Toyota’s new headquarters is completed in late 2016 or early 2017. Toyota Financial Services (TFS) is not expected to transition to Plano from its current headquarters in Torrance, Calif., until 2017, which will affect around 1,000 employees.
Jim Lentz, who was named Toyota’s first chief executive officer for the North America Region in 2013, said: “With our major North American business affiliates and leaders together in one location for the first time, we will be better equipped to speed decision making, share best practices, and leverage the combined strength of our employees. This, in turn, will strengthen our ability to put customers first and to continue making great products that exceed their expectations. Ultimately, enabling greater collaboration and efficiencies across Toyota will help us become a more dynamic, innovative and successful organization in North America. This is the most significant change we’ve made to our North American operations in the past 50 years, and we are excited for what the future holds.”
In support of the communities in California and Kentucky, Toyota also announced a $10 million philanthropic commitment to provide continued funding for local non-profits and community organizations in these states over a five-year period beginning in 2017, over and above existing commitments.
The establishment of a new headquarters builds upon previous efforts by Toyota to enhance regional autonomy, self-reliance and responsibility. While the sales and marketing, manufacturing and corporate business units will retain their responsibilities and operating names, Toyota expects that new cross-functional teams will identify and execute on ways to serve the broader North American organization.
Toyota will construct a new, environmentally-sustainable campus facility in Plano, which is expected to take two or more years to construct after groundbreaking in the fall of 2014. Until the new campus facility is complete, initial small groups of employees will work from a temporary location in the Plano area.
Toyota will also build a new facility on TTC’s York campus (subject to final approval of state and local incentives) to accommodate approximately 250 direct procurement positions currently based at TEMA in Erlanger.
In addition, about 300 production engineering positions based in Erlanger will be relocated to a new facility to be built at Toyota Motor Manufacturing Kentucky (TMMK) in Georgetown, Ky., while approximately 1,000 TEMA administrative positions will transition to Plano.
Toyota’s 10 manufacturing plants in the U.S. will not be impacted by these changes. Also, the following Toyota units will not be impacted at this time:
-Toyota regional field offices and Lexus area offices
-Operating units in Canada, Mexico and Puerto Rico
-Toyota Financial Service’s regional offices, sales offices, service centers and its bank
-Calty Design Research facilities
-Toyota InfoTechnology Center
-Toyota Racing Development
-AirFlite Inc.
-Logistics Services Field Locations
-Distribution centers
After moving from its existing headquarters, Toyota will continue to have approximately 2,300 employees in California and 8,200 employees in Kentucky. This includes 750 new jobs being added at TMMK for production of the Lexus ES, which begins in 2015. Toyota will also continue to maintain offices in the New York City area and Washington, DC.
The move will not impact Toyota’s relationship with Gulf States Toyota, Inc. (GST), a private distributor of Toyota vehicles based in Houston, Texas.
Toyota Financial Services (TFS) is a service mark used to refer to a number of entities, including Toyota Motor Credit Corporation (TMCC), Toyota Financial Savings Bank (TFSB), and Toyota Motor Insurance Services, Inc. (TMIS).
04-28-14, 11:16 AM
#39
Lexus Fanatic
iTrader: (20)
also, from that forbes article (link above):
In the annual Chief Executive magazine “Best States / Worst States” ranking that surveys CEOs for their opinions, Texas has been holding on to the No. 1 spot for a while; California seems permanently relegated to No. 50.
As Automotive News put it, “Despite the deep, creative talent pool in greater Los Angeles, doing business in California has become more expensive for companies and their workers.” Bestplaces.net said that the cost of living for employees is 39 percent higher in Torrance than in Plano, and housing costs are 63 percent lower in Plano.
Thus, over the last 10 years, the Lone Star State has stolen so many jobs from the paragon of the Pacific Coast that Toyota’s reported move should come as no big surprise.
As Automotive News put it, “Despite the deep, creative talent pool in greater Los Angeles, doing business in California has become more expensive for companies and their workers.” Bestplaces.net said that the cost of living for employees is 39 percent higher in Torrance than in Plano, and housing costs are 63 percent lower in Plano.
Thus, over the last 10 years, the Lone Star State has stolen so many jobs from the paragon of the Pacific Coast that Toyota’s reported move should come as no big surprise.
Last edited by bitkahuna; 04-28-14 at 11:20 AM.
04-28-14, 11:22 AM
#40
Lexus Fanatic
iTrader: (20)
on a related note, to show how bad and stupid our corporate tax policy is - apple, with tens of billions in reserves (a ton of it overseas) is BORROWING MONEY (bond issue) to buy back its own stock, because it's cheaper than paying the corp taxes it would owe if it brough back its offshore money. 
can't blame apple - it's only doing what's best for itself, it's employees and shareholders, and ultimately, the consumer.
note to feds: you should tax CONSUMPTION not PRODUCTION.
can't blame apple - it's only doing what's best for itself, it's employees and shareholders, and ultimately, the consumer.
note to feds: you should tax CONSUMPTION not PRODUCTION.
04-28-14, 11:31 AM
#41
Lexus Fanatic
The Feds (and the states) already DO tax consumption. A significant percentage of what you pay at the gas pump to fill your cars up is taxes...though we all know, of course, that the percentage is much higher in Europe and Japan.
04-28-14, 11:32 AM
#42
Guest
Posts: n/a
there are other ports in the u.s.
doesn't hurt that you're 6'6" and mean looking.
gee wonder why - could it be republican governors and state legislatures that recognize 'big business' isn't the problem, but the solution, and if you keep on bullying it with monopoly power, it will eventually move away. and of course the white house is completely clueless on this topic, and on the federal level, that means the jobs go to other countries.
also, from that forbes article (link above):
doesn't hurt that you're 6'6" and mean looking.
gee wonder why - could it be republican governors and state legislatures that recognize 'big business' isn't the problem, but the solution, and if you keep on bullying it with monopoly power, it will eventually move away. and of course the white house is completely clueless on this topic, and on the federal level, that means the jobs go to other countries.
also, from that forbes article (link above):
Good luck to all the employees at TMC who have to move, it is challenging but the skies are the limit. Having recently moved myself I feel their pain and good luck to them all.
04-28-14, 11:38 AM
#45
Formerly Bad Co
Join Date: Dec 2013
Location: Chicago
Posts: 1,041
Likes: 0
Received 0 Likes
on
0 Posts
This isn't the appropriate place for another misguided anti Obama anti Left rant. You can continue to do that in the debate forum. There are a multitude of factors making this decision, Toyota is looking 30 years ahead, not just 4 years ahead. You do realize California had a Republican Governor for quite some time don't you. So really don't go there, it is a very complicated scenario.
Good luck to all the employees at TMC who have to move, it is challenging but the skies are the limit. Having recently moved myself I feel their pain and good luck to them all.
Good luck to all the employees at TMC who have to move, it is challenging but the skies are the limit. Having recently moved myself I feel their pain and good luck to them all.
Lets be realistic its Nancy and Babs that run the state.