Toyota USA could be relocating its US headquarters from Torrance, California to Texas, multiple reports say. Plano, Texas, a suburb of Dallas, has been selected as the new location, and residents have reportedly seen executives from a large company scouting the area for development.
The news broke Sunday evening on Bloomberg, leaked by sources within Toyota who chose not to be named as the information had not been made public yet. They say high-level employees were informed Friday and were expected to inform their subordinates this week. Toyota currently employs over 5,300 people at its southern California location. Many Toyota USA employees first heard of this development through the news and not from management.
Reasons for the move include putting Toyota USA’s executives closer to its manufacturing hubs in San Antonio, Kentucky, and Mississippi. However, it is also speculated that the state’s famously business friendly climate, including a unrestrictive regulatory system, fewer taxes and lower cost of living may have something to do with the decision too.
Since its founding in 1957, Toyota Motor Sales USA has been located in SoCal, the nexus of American car culture. Starting from a small dealership in Hollywood to what is now a sprawling campus in Torrance, it has been a Los Angeles area fixture.
This echoes Nissan USA’s 2006 move from California to Nashville, Tennessee. Only 42% of its staff decided to stay. It is expected that it will take two years for Toyota to make the transition.
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