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  • William Maley
    William Maley

    By William Maley •

    Rumorpile: From California to Texas, A Toyota Goes

      Toyota Considers A Great Move From California to Texas

    Toyota is considering moving substantial parts of its U.S. headquarters from California to Texas. Bloomberg has learned from sources from the automaker that certain high-level employees were told of the move on Friday and that the company will make an announcement today.

    “It would be very consequential for Southern California. There might be some brain drain and tumult for employees, though it should be largely seamless to the consumer. This kind of thing can create some disruption of momentum,” said Jack Nerad, executive market analyst for Kelly Blue Book.

    Reasons for this move include putting Toyota USA's executives close by their manufacturing plants in San Antonio, Kentucky, and Mississippi. However, another reason for this move comes down to how expensive it is to live and work in California. Automotive News pulled some stats on California and they aren't pretty.

    • Expatistan rates the Los Angeles metropolitan area as the ninth most-expensive place to live
    • California is third in Tax Foundation's study in which states have the worst complex, non-neutral taxes with comparatively high rates
    • Forbes rates California 36th in which states are best to do business

    Meanwhile, Texas has been rated seventh in the same study done by Forbes. Texas also has a number of tax breaks and lower cost of living.

    We'll keep you posted on this developing story.

    Source: Bloomberg, Automotive News (Subscription Required)

    William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

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