It's official, Toyota is relocating its US operations to Plano, TX. And it won't be a symbolic 'all ranch and no cattle' gesture – the Japanese automaker, whose headquarters have been in California since 1957, has decided to base nearly all of its operations in the Lone Star State, including much of its engineering, finance and sales and marketing teams.

The move, which will see the establishment of a new headquarters campus in the Dallas suburb will not only affect employees at the company's current Torrance, CA Toyota Motor Sales USA campus, it will also touch the lives of thousands of employees at the company's other operations, including 1,000 workers at Toyota Motor Engineering & Manufacturing North America in Erlanger, KY and some New York-based staff as well. The Toyota Technical Center in Ann Arbor, MI is not facing relocation, however, and it actually stands to gain responsibilities as Toyota overhauls its US org chart. Toyota says that its reorganization will affect about 4,000 employees in total.

According to Automotive News, while Toyota is adopting an "'everyone is invited' stance for the relocation," some attrition is expected from employees who aren't interested in relocating southward from the Golden State. For its part, the automaker is reportedly making expenses-paid visits to Plano available to full-time staffers and spouses to help them make the relocation decision, as well as a lump-sum payment if they decide to go through with the move.

The move is expected to realize massive cost savings for Toyota, including in areas of taxation, real estate and employee cost of living. It is also expected to allow for consolidation in areas like human resources, information technologies, legal and accounting. Critically, the move will put the company closer to its North American manufacturing base, which has been increasingly concentrated in southern states, including Texas.

According to North American CEO Jim Lentz, "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."

Most Toyota employee are not expected to make the move to the new campus (said to be envisioned in the style of Apple's eco-friendly Silicon Valley campus) until late 2017, but the first employees will begin relocating to Plano this fall, working out of a temporary location until the new headquarters is ready. Groundbreaking for the new facilities is slated to happen in the third quarter of this year, with construction expected to take a further two or more years.
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Toyota to Establish New North American Headquarters

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
April 28, 2014

Torrance, Calif., Erlanger, Ky., New York, N.Y., and Ann Arbor, Mich., April 28, 2014 –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).

About Toyota
Toyota (NYSE:TM), the world's top automaker and creator of the Prius, is committed to building vehicles for the way people live through our Toyota, Lexus and Scion brands. Over the past 50 years, we've built more than 25 million cars and trucks in North America, where we operate 14 manufacturing plants (10 in the U.S.) and directly employ more than 40,000 people (more than 32,000 in the U.S.). Our 1,800 North American dealerships (1,500 in the U.S.) sold more than 2.5 million cars and trucks (more than 2.2 million in the U.S.) in 2013 – and about 80 percent of all Toyota vehicles sold over the past 20 years are still on the road today.

Toyota partners with philanthropic organizations across the country, with a focus on education, safety and the environment. As part of this commitment, we share the company's extensive know-how garnered from building great cars and trucks to help community organizations and other nonprofits expand their ability to do good. For more information about Toyota, visit www.toyotanewsroom.com.


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    • 1 Second Ago
  • 186 Comments
      Jake
      • 8 Months Ago
      "employees who aren't interested in relocating southward from the Golden State." Anybody there have a map?
      marv.shocker
      • 8 Months Ago
      What's a "lump sump" payment? Copy editors, guys…ever heard of them?
      Racerman967
      • 8 Months Ago
      Honda US headquarters is right ny Toyota's. Nissan left a few years ago. Honda moving countdown starts in 3....2....1....
      Don Maser
      • 8 Months Ago
      Way to go Jerry Brown, Kudos to Gov. Rick Perry. We in California are getting our lunch eaten by the left. As a native born Californian I am disgusted with our voters. I guess to many of us have become lazy. We are reaping what we have sown.
        Neez
        • 1 Month Ago
        @Don Maser

        I wish more californians were like you.

      bugsy69s
      • 8 Months Ago
      Lets give Caifornia back to Mexico, starting with all their liberal ideas,and their liberal politicians. They can have Hollywood also.
        Zoom
        • 8 Months Ago
        @bugsy69s
        How about giving Texas back to Mexico? That would be much better. CA contributes more to the national GDP than Texas, anyway.
          carpro33
          • 8 Months Ago
          @Zoom
          Sorry, "zoom", but you either lie or don't know what you're talking about. Get the FACTS and try to be honest, although that is almost impossible to libbers.
          Ron
          • 8 Months Ago
          @Zoom
          lol.. nope. Texas has 10 of the top 25 economies in the US, 7 of the top 10 fastest growing economies in the US, No personal state income tax, reasonable cost of living, and some of the top rated public school systems in the nation.
        Zoom
        • 8 Months Ago
        @bugsy69s
        How about giving Texas back to Mexico? That would be much better. CA contributes more to the national GDP than Texas, anyway.
      John
      • 8 Months Ago
      Yow, reading the vitriol from the Texans in these comments reminds me of why I was so happy to leave the place after living there 25 years. We get it, you really like living there, but let's not be delusional here. Plano, in particular, is the very definition of faceless suburban sprawl - endless identical houses in communities which try to outdo each other with the quantity of stone or faux waterfalls on their entrance walls. There are lots and lots of strip centers, churches, Walmarts and chain restaurants. LOTS of chain restaurants. For some this is fine, and no doubt a good percentage of the employees will make the move just for security and to have a bit more living space than they have now. Others, though, especially those who have grown up with the CA culture and the variety of its opportunities will find the extreme conservatism of the area a real shock, and they are likely to be good pickups for Tesla and other companies looking to add some quality, experienced staff.
        MrMonkaroo
        • 8 Months Ago
        @John
        I can't believe you would mention urban sprawl considering how bad it is in California's major cities. I guess you know that just because the headquarters is in Plano doesn't mean they have to live in Plano. Dallas Texas has its liberal culture along with its conservative population so I'm sure they will find their niche.
        rcavaretti
        • 8 Months Ago
        @John
        It's the fundie religious nut jobs I had a problem with.
        Neez
        • 8 Months Ago
        @John
        I don't know that i would want to raise my kids in "cali culture". Most kids there are too spoiled, rude, self centered, entitled etc.... Not saying all, but that's the trend i saw when i spent some time in huntington beach. I'd much rather have fake walls rather than a fake personality. The home prices are much much cheaper in texas, and it's not a "bit larger" it's actually "way way larger" home for the same price. So they have to cut corners somewhere. I'd prefer the extra space to having "real" walls. So really, it's just the restaurants that suck about texas.
        tt
        • 8 Months Ago
        @John
        What is amazing is that on practically every website, when there is a very positive article on California which counters the trolls' narrative, there isn't a single comment. However when there is a negative article, the paid trolls and shills come out of the wood work. Their vitriol and arguments are all tired and regurgitated and are pathetic attempts to "change perceptions". The irony is, if California is so terrible and Texas is so much better and everybody is happily employed, than why are Texans spending their time, 24/7, on articles on California, especially on Californian websites, spewing their nonsense? I guess their jealousy runs so deep it has become a sick obsession requiring therapy. You don't see such behavior by Californians on Texan articles or websites. I guess Californians are too busy enjoying their high quality of life and gainful employment to have time to have such asinine obsessions with other states.
          Neez
          • 8 Months Ago
          @tt
          WTF are you talking about, this is autoblog!!!! It covers all states, and there are plenty of californian's making statements against toyota and texas for leaving. You're simply making biased assumptions. California is a great place to live if you can afford it. Most people that live there and can't, live a pretty crappy life. California however, is not a great place to do business. They over regulate and overtax, that's simply a formula for mass business exodus just like detroit. "Gainful Employment"???? Are you joking, california has the 4th highest unemployment rate around 9%. Texas is way down below the national average, they are around 3.5%. Texans are working, even for minimum wage. At least with minimum wage, they can still get housing and food.
      mia.anderson6
      • 8 Months Ago
      Why so angry Texas? So you didn't win the battle of the Alamo and you've had little dick syndrome ever since - more recently displayed with the trend of buying and driving big a$$ trucks. It's okay, you can have Toyota! You actually won this one! Cali has plenty to go around. You guys should go celebrate by buying a brand new Toyota Tundra...TEXAS Edition! Oh, and don't forget the little balls on the back (or are they supposed to be big balls? Eh, whatever).
        Neez
        • 8 Months Ago
        @mia.anderson6
        i didn't see any posts here from angry texans?? You're projecting. Most of the angry posts are liberals bashing toyota because they wanted to save money and move to texas. When in reality they know, it's their very policies that forced the moved. There is no way to deny that. It's misplaced anger. I also find it ironic that you make fun of peoples genital sizes, when most of the people in california are driving around in prius's. If someone lost their balls, it's not the texans.
          wrestleprocbt
          • 8 Months Ago
          @Neez
          They don't need big vehicles to carry their balls in....just very very small ones. HAHA
        wrestleprocbt
        • 8 Months Ago
        @mia.anderson6
        Texas isn't angry, it's smart and appreciative of businesses and people that want to be successful and not penalize them for that like other dem controlled states. I don't live anywhere near Texas but I sure can tell it makes good business sense for them and the people of Texas. Glad my state realizes this also and attracts business instead of saying we don't want you unless you give us all your money so we can redistribute it like the fed gov't does. It's not a working business model in what is going on in Cal, New Englad states and in Washington.
        IBx27
        • 8 Months Ago
        @mia.anderson6
        Someone's jealous that a lifted Cummins gets 28mpg with a trailer while putting out less toxic emissions than a hybrid.
        joelknowlton
        • 8 Months Ago
        @mia.anderson6
        fHahahahahahahahahahaha, your jealousy is showing
      Flutepeace
      • 4 Months Ago

      Anyone interested in buying a house in Plano ?

      Zoom
      • 8 Months Ago
      If I lived in CA and worked for Toyota, I wouldn't be caught dead in Plano. Guess there will be a lot of people looking for new jobs.
        carpro33
        • 8 Months Ago
        @Zoom
        So don't go to Texas. No one really CARES what you do. Got it? Good !
        • 8 Months Ago
        @Zoom
        [blocked]
      lendersmith
      • 8 Months Ago
      Just part of the mass exodus from lala land.
        Niels Marienlund
        • 8 Months Ago
        @lendersmith
        I'm pretty sure a significantly higher chunk of California's most profitable companies are staying put. It's still true that more people who relocate out of California are lower-income, as they stand to lose a greater percentage of their wealth, adjusted for cost of living. A major drawback of businesses moving to Texas is their difficulty attracting people who have an IQ above room temperature in a Siberian log cabin.
          Ron
          • 8 Months Ago
          @Niels Marienlund
          Hey churchmotor "mouth" - CA is the 15th MOST educated state. In case you missed it Texas is 28th, but most of the Red States are at the bottom of education levels and income. After Nevada it heads downhill with Alabama, Kentucky, Louisiana, Arkansas, Mississippi and West Virginia occupying the cellar. Something for you delinquents in the repub party to be proud of.Get the facts, quit the bull, liar.
          churchmotor
          • 8 Months Ago
          @Niels Marienlund
          Niels Marienlund, I bet you watch MSNBC for you news. Anyway, just so you know, California is now the LEAST educated state in the USA.
          Ryth
          • 8 Months Ago
          @Niels Marienlund
          They will stay put till they can no longer use tax loopholes to not pay taxes then they'll move for sure. CA doesn't understand that if you over tax, your $$$ will move and then you won't have any companies to tax.
          churchmotor
          • 8 Months Ago
          @Niels Marienlund
          http://www.prnewswire.com/news-releases/california-now-the-least-educated-state-96037369.html
          churchmotor
          • 8 Months Ago
          @Niels Marienlund
          http://www.prnewswire.com/news-releases/california-now-the-least-educated-state-96037369.html
          Niels Marienlund
          • 8 Months Ago
          @Niels Marienlund
          http://www.bloomberg.com/visual-data/best-and-worst/most-educated-states
          Bill
          • 8 Months Ago
          @Niels Marienlund
          As a resident of the DFW area for 20 years, I can assure you it is far from the perfect place to live the Chamber of Commerce folks would have you believe. Plano is a flat, featureless place, urban sprawl at its worst. Dallas is apporaching near-LA levels of traffic congestion. Though we have no state income tax, our property taxes (and homeowners insurance rates, thanks to the radically business-friendly state legislature) are among the highest in the nation. Aside from being able to purchase a larger home for less money than in CA, we have few other quality of life factors to justify all the bragging. If starting over, I wouldn't locate here and will be leaving as soon as I retire in a couple of years.
          churchmotor
          • 8 Months Ago
          @Niels Marienlund
          Niels Marienlund, I bet you watch MSNBC for you news. Anyway, just so you know, California is now the LEAST educated state in the USA.
      nimtun
      • 8 Months Ago
      Please, please, please get rid of all demos in California government before the state resembles Detroit, Chicago and all the other Democratic success stories...............................
      bajadays
      • 8 Months Ago
      WHO ARE THE LIBERAL DEM'S GOING TO TAX WHEN ALL THE PROFITABLE BUSINESSES LEAVE CALIFORNIA?
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