UPDATE: It's official, Toyota has announced it is relocating its North American headquarters in Plano, Texas. See the full story here.

According to multiple sources familiar with the matter, Toyota is poised to announce Monday that it is restructuring its US operations, which may include plans to relocate some of its operations to Texas. Toyota Motor Sales has been located in California since 1957, and is responsible for North American sales, marketing, and distribution for Toyota, Lexus and Scion. According to Toyota literature, its Torrance operations presently employs 6,156 workers and represents a $2.3-billion investment.

Workers in Toyota's Torrance offices were abuzz about the possible relocation to Texas. One young offspring of a Toyota employee even posted to Twitter that her parents warned about the upcoming move, and she said she's refusing to go.

Twitter

Rumors at one point had Toyota settling in Richardson, TX, just outside Plano. But Autoblog talked to Richardson Mayor Laura Maczka, who said she would be thrilled if that were true, but has not heard anything on the subject. Autoblog also emailed with Bill Sutherland, a city councilman in Torrance, CA, who said, "To date the only info I have is what I have read in the paper expecting a press release Monday."

If the automaker moves its operations to the Lone Star state, the transition is expected to take place in waves over two to three years. It is not immediately clear when the transition will begin, or if Toyota Financial Services also plans to relocate its operations – a division that employs a further 3,286 workers. It is also unknown how many employees will be offered assistance packages, should this move to Texas actually happen.

If the automaker moves its operations to the Lone Star state, the transition is expected to take place in waves over two to three years.

The reason for the potential relocation remains unclear, but a new address in Texas would likely bring with it major operational cost savings. It could also bring improved contact with its US manufacturing operations, which are increasingly located in the South, including major plants in Huntsville, AL; Blue Springs, MS and San Antonio, TX.

This would not be the first time an automaker has abandoned the Golden State to find cheaper real estate. Back in November of 2005, fellow Japanese automaker Nissan made a similar move, announcing plans to relocate its headquarters from Gardena, CA, to Nashville, TN, with CEO Carlos Ghosn admitting that a primary objective was to lower costs.

Jim Lentz, Toyota North America CEO, is expected to make an announcement to the staff in Torrance on Monday morning, possibly from a remote location.

Word of Toyota's move has come to Autoblog from multiple sources, including anonymous contacts within the corporation familiar with the matter. Autoblog has attempted to reach out to the company through multiple official channels, but has yet to hear back as of publication time. We will update this story when we learn more.


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  • 221 Comments
      Neez
      • 8 Months Ago
      Well, this little girl may not want to move. But i'm sure her parents are probably considering it. A look at zillow will show that a typical condo in torrance is about $400k+, whereas you can buy a half decent 4 bedroom house in richardson for $250k with 0.5acre lot and 2 car garage. For many of the employees, they probably have enough equity in their CA home to sell it, and buy a house in richardson paid in full. They could retire early, or take lots of nice vacations with all the money they save.
      Jesus!
      • 8 Months Ago
      I will be interested to see if my town near Houston is on their radar. They just broke ground on Mistubishi Heavy Industries in my suburb. There is plenty of room for Toyota to build in a section of the city. Hmmm...
      • 8 Months Ago
      [blocked]
      Graham Combs
      • 8 Months Ago
      Speaking from still struggling and dysfunctional South East Michigan, I was going to make a comment but you guys have said it all. Thanks.
      • 8 Months Ago
      Good for Toyota. I lived in California for 2 years because I needed two years of work so I could retire. I lost my job ion the mid-west and the job I landed in California looked great....until I moved there. I lived in the Redondo Beach-Torrance area. Sales tax was 9%. Rent on a I bedroom apartment was $2250 per month. Gas was over $4.00 a gallon. Milk is almost $5.00 a gallon. Car license plates were over $100.00 a year. Car insurance was $100+ /month. You had to pay huge fees to go to the state parks. Went to the Santa Monica pier, $12.00 to park. And it took an hour to drive the 25 miles from Redondo Beach. And this was on a weekend. If I wasn't working 7 days a week, I wouldn't have been able to afford the little I had. California is over taxed, over rated and over populated I'm back home in the mid- west now. I’m paying $800/month rent, $2.5/gallon for milk, no income tax, $24/month auto insurance (from 4AutoInsuranceQuote .. woohoo!), 5% sales tax, I have enough personal space not to go crazy, and because of that, I’m healthier and happier. Thank goodness.
      Perry
      • 8 Months Ago
      California is a great state except to do business. Nice to visit but hardly a paradise for investment. Most movies are made out of State because of high taxation. Excess utilities costs and taxes are driving successful businesses away. The State Government debt also adds to it's own problems. With such a diverse population and large one too, it is a shame that businesses have to move in order to survive?
      llmoss13
      • 8 Months Ago
      Gosh! Why would they do that? Is Texas that good or is Califonication that bad?
      James
      • 8 Months Ago
      I have a 2013 toyota tacoma . Great truck !
      ex-ford
      • 8 Months Ago
      Another business leaving the Boxer, Pelosi state, imagine that. Soon it will be just a state with welfare recipients and nice weather.
      JayP
      • 8 Months Ago
      With regs in California and the east coast becoming less business friendly, businesses will see Texas as a good place to set stakes. Not just automotive but manufacturing in general.
      Rick C.
      • 8 Months Ago
      Oh please. People like to blame 'restrictive' California policies. If that's the case, why then did hundreds of companies move operations overseas? One word: Greed.
        Rex Monaco
        • 8 Months Ago
        @Rick C.
        Another public school drop-out.
        Rick C.
        • 8 Months Ago
        @Rick C.
        And that's companies from all over the US.
        Adarus
        • 8 Months Ago
        @Rick C.
        They moved overseas because it's a hell of a lot cheaper. Businesses aren't a charity. The real question is, why has labor become so expensive in certain parts of the US when jobs are needed the most?
      IBx27
      • 8 Months Ago
      Texas for the win! Less taxes, better food, better weather, fewer strangling restrictions on business, and it's Texas! A-Whoop!
        lasertekk
        • 8 Months Ago
        @IBx27
        Less restrictions and less oversight. Perfect if you want a chemical plant to explode and take out the neighboring town!
          Rex Monaco
          • 8 Months Ago
          @lasertekk
          Because the refinery in Torrance has never exploded due to California's regulatory climate. Oh wait, yeah it did.
          Rick C.
          • 8 Months Ago
          @lasertekk
          Ah, that actually DID happen in Tax-as
        tump
        • 8 Months Ago
        @IBx27
        Better weather? You're insane.
          Neez
          • 8 Months Ago
          @tump
          IBx27 You've obviously never been to california. It's fair weather 90% of the year around los angeles. It's extremely nice there all year round. In texas, the summers can get excessively hot, that's not nice weather.
          Carpinions
          • 8 Months Ago
          @tump
          IBx27, California has what's probably the most sought-after weather in any state, period. Meanwhile, Austin, which is 3 miles form the Gulf, was iced over several times this past winter. Your argument is BS.
          IBx27
          • 8 Months Ago
          @tump
          I'm only 22 and my hands get arthritis when it drops below freezing for more than a week, thanks to 22 winters in the dreadful socialist state of new york. Now I'm in Texas, where it hit 91 degrees yesterday. How's that April snow working for ya?
          Carpinions
          • 8 Months Ago
          @tump
          ARGH! I meant to say 3 hours from the Gulf.
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