Toyota’s plan to move its headquarters from Torrance, California to Plano, Texas could boost the Dallas suburb’s local economy by $7.2 billion over the next 10 years.
Toyota received $6.75 million in grants and incentives from the city of Plano itself, while Texas is offering $40 million from a pool of cash reserves called the Texas Enterprise Fund. However, if the study conducted by Grant Thornton LLP, an independent audit tax and advisory firm, proves correct, the the state will earn back that amount 154 times.
Payroll alone would account for $4.2 billion, leaving the remaining $3 billion to come from sales and property taxes, direct and indirect spending. The analysis further predicts that by 2018, Toyota would be employing 3,650 full-time employees in Plano, with an average salary of $104,000.
Toyota says that its main motivation behind the goal is to consolidate its operations, which currently consists of over 3,000 employees in sales, marketing and financial services in California, 1,000 employees in an engineering center in Kentucky, and less than 100 in New York. The move will take place over the course of three years and centralize key operations in one location and time zone. It’s part of a streamlining plan that takes the “next 50 years” into account, says Toyota.
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