• Nov 25, 2009
While the majority of Toyota's jobs are still in Japan, the auto juggernaut has also accumulated a 34,000-employee empire here in the U.S. as well. Those jobs are scattered among ten manufacturing facilities and three main office complexes in Michigan, Kentucky and at the company's North American headquarters in Torrence, California. But the downtrodden auto industry and Toyota's recent losses have prompted the Japanese automaker to find ways to cut costs, and the company's California headquarters may lose some workers as a result.
The Detroit News is reporting that Toyota is relocating product planning, accounting, travel and data services jobs from California to its engineering and manufacturing headquarters in Kentucky and its technical center in Michigan. Toyota is neither confirming or denying the report, but the company did say it isn't going to exit California like Nissan did earlier in the decade, adding "Emphasis has been placed on finding new efficiencies, shared services and enhanced collaboration to address the changing economic conditions and prepare Toyota for the future automotive market environment." Toyota currently employs 10,700 workers in California, a number that will drop if this report proves true.

UPDATE: Toyota has released a statement that it isn't planning any "significant geographic relocation of personnel" at this time. Hit the jump to view the short release.

[Source: The Detroit News]

PRESS RELEASE:

Toyota's North American affiliate companies have no plans to change their multi-company structure, nor plans for any significant geographic relocation of personnel outside of normal operations. Emphasis has been placed on finding new efficiencies, shared services and enhanced collaboration to address the changing economic conditions and prepare Toyota for the future automotive market environment.


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  • 38 Comments
      • 5 Years Ago
      Why would they come to Michigan?
      It is awful here.
      That is why I am leaving.
      Maybe California is not so great, but this place is a dogpile.
      • 5 Years Ago
      Sucks to be California these days.
      • 5 Years Ago
      It seems that California is getting out of fashion.
        • 5 Years Ago
        Another poor joke on my behave.
        • 5 Years Ago
        Hey a$$holeauto. Nobody here gives a rat's ass about Shanghai. But I do love egg foo young.
        • 5 Years Ago
        "Michigan is doing poorly because its economy is too heavily reliant on the domestic auto industry. California is doing poorly because it’s a poorly run state. Michigan is slightly below average in terms of taxes as a percentage of GDP and has a much lower tax rate on working professionals than California. It’s got some of the best educated people in the country and the cost of living is reasonable. If I were relocating a manufacturing plant, then I would never pick Michigan. White collar jobs on the other hand would find a good home in the area."

        Well said, Compy. Also, this is still the auto capital of the US, if not the world, where a very high concentration of automakers and suppliers from around the globe have offices, engineering and other facilities. If you want well-trained peorple, you go where the industry resides.
        • 5 Years Ago
        "Well said, Compy. Also, this is still the auto capital of the US, if not the world, where a very high concentration of automakers and suppliers from around the globe have offices, engineering and other facilities. If you want well-trained peorple, you go where the industry resides."

        Actually Shanghai is considered the auto capital of the wold. Back on topic Michigan talent pool has eroded so if you want well people with automotive/mechanical skills best bet would be texas.
        • 5 Years Ago
        Employees are gonna be happy with that move.............not
        • 5 Years Ago
        I'm surprised that Toyota would float this trial balloon—which is what this is—to see what the reaction would be. The mood at TMS headquarters in Torrance is already at a 10-year low. So to instill fear and uncertainty among the troops is really stupid.

        Can't imagine SoCal residents moving to dreary Detroit. Didn't Nissan lose a lot of its key people when they moved to Nashville? You'd think that Toyota would have learned from that debacle. Maybe not.
        • 5 Years Ago
        Say whatever you want, California still has the hottest girls, fittest people, and the most cash (along with NYC) in the entire union. I would never imagine living anywhere else than the beautiful Brentwood.

        ..this will anger trailer-trash America
        • 5 Years Ago
        @Coolio
        Never mind Sea Urine. Greetings from another Nova Scotia transplant.

        Ironically a move to Michigan might be good for some of these folks. Their professional salary will go a lot farther in Michigan than it does in California. They might actually be able to buy a real house with a yard. Of course Toyota is probably hoping they can eventually lower the pay scale accordingly as well. You can also breathe the air in Michigan and it is actually a beautiful state outside of Detroit. Contrary to popular belief the world outside of California is not one big wasteland.
        • 5 Years Ago
        Who would leave CA to go to Michigan? CA may have credit ration of Egypt or Lebanon but their economy is much better than Michigan's.
        • 5 Years Ago
        Judging by the outlandish home prices California still commands (they haven't declined nearly as much as anywhere else) I think the state is as desirable as ever. Expensive as it is, between the weather and culture, it's hard to beat.

        Nissan's move to Tennessee was an unqualified disaster for them, losing design, marketing and executive talent in DROVES and actually increased much of their costs. Toyota isn't dumb enough to make that mistake...I don't think.
        • 5 Years Ago
        @daleam
        Retards like you are the reason why the auto manufacturers go to Shanghai to release cars now.
        • 5 Years Ago
        "Hence my living in Ontario and not home in Nova Scotia."-----------I lost all interest in this conversation after this line.
        • 5 Years Ago
        This would be a tough move. I image that some people will have to make the move if they don't have marketable skills. On the other hand, accountants and some other professionals won't follow Toyota out of the state.
      • 5 Years Ago
      If I were in Torrence, I'd leave too.
        • 5 Years Ago
        Yeah, because living near the beach and 70 degree Winters is so lame, eh?
      • 5 Years Ago
      obvious, Michigan = battery R&D and mfg capital of United States
      • 5 Years Ago
      Good call. Cal is nastier than a pig's äss anymore.

      And yes all you calapologists, I was born and raised there, so I know what i am talking about.
        • 5 Years Ago
        Then you're clearly one of the losers who couldn't make it here. Buh-bye.

        The fact I can snowboard in the morning and go surfing when I get home is pretty nice. I also like seeing the little bands in clubs before they get huge. The art scene is great too for those of us who are into it. You don't see the same cutting edge of culture or tolerance for different people in the midwest. Running along the beach and wearing flip-flops year-round is nice too.

        So thanks for leaving!
      • 5 Years Ago
      They also need to address reliability issues.
      • 5 Years Ago
      they really should all relocated to Indiana where the cost of living is low, and consistently ranked #1 in housing affordability indexes.
      • 5 Years Ago
      I have always questioned the business sense of locating in expensive, business-UNfriendly (taxed to death) Commiefornia.

      Middle America makes the most sense.

      Sure, design studios wherever you need them. Toyota is already building in Lafayette and Evansville Indiana and Georgetown Kentucky. Good choices.
        • 5 Years Ago
        "Commiefornia"

        Did you come up with that all by yourself?
      • 5 Years Ago
      I live in CA and see businesses exiting all the time for other states that are more "business friendly". The truth is...CA is just about one of the worst places to do business from an employer point of view. The employer is always wrong by default when it comes to employee issues and the state taxes small businesses to the point of insanity
      • 5 Years Ago
      I'm all for having less cars on the 405 every morning and afternoon, Toyota or otherwise.
      • 5 Years Ago
      This just shows that despite claims that Toyota and Honda products are made in the USA, when push comes to shove they will let go of American workers before Japanese workers.

      True that Toyota has laid-off part-time workers in Japan, and that during the downturn they paid American workers while they were training and doing community service, but if upper management has to decide to close a Corolla plant either in Japan or the U.S., they will choose to close in the U.S. eventhough, the Yen is so much stronger than the dollar that it makes more sense to build them in the U.S. than bring them from Japan.
        • 5 Years Ago
        I see the Yen at 85 to the USD. The Korean Won versus the Yen has dropped even more. The Japanese automakers are hurting at this exchange rate.

        Meanwhile, Toyota itself has said that it has too much capacity and at the same time the Japanese domestic auto market keeps shrinking as the younger population shun cars (if they live in Tokyo they use public transportation) and the population shrinks and ages due to abysmal natality rates.

        Thus Toyota has a perfect storm of domestic overcapacity coupled to a disadvantageous currency exchange rate. Rather than close the overcapacity in a market that is shrinking they are closing or reducing capacity in one of their most profitable markets that also offers a great potential and economical manufacturing possibilities (as the Germans are slowly realizing and transfering production stateside).

        Wouldn't it make sense to build more Toyotas in the U.S. or Mexico than bringing them from Japan where the exchange rates are a negative and the domestic demand propspects do not look good?
        • 5 Years Ago
        Do you have any evidence that this is true at all?
        Seriously, you're pulling this out of your butt.
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