Toyota News: The Move Is Official: Toyota Heads To Texas

[William Maley]

---

This morning, we reported on the rumor that Toyota was planning to its North American headquarters from California to Texas. Well this afternoon, the company has made it official. In a statement, Toyota announced that it will be moving from Torrance, California to Plano, Texas. The move will take about three years and affect around 4,000 people. Those 4,000 people include,

• 2,000 from Toyota Motor Sales, U.S.A., Inc. Headquarters in Torrance, CA
  
• 1,000 from Toyota Financial Services in Torrance, CA
  
• 1,000 from Toyota Motor Engineering & Manufacturing North America in Erlanger, KY
  
• Some employees of Toyota Motor North America based in New York
  

"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,” said Jim Lentz, Toyota North America CEO.

As part of the plans, Toyota will offer all their full-time employees and their spouses an expenses-paid site visit to Plano, and a relocation payment if they decide to move.

No word on how many of Toyota's current employees plan to move to Texas.

Source: Toyota, Automotive News (Subscription Required), Wards Auto

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.

Press Release is on Page 2

---

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
  

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).

View full article

[Drew Dowdell]

The employees will probably get 3 to 6 months to make up their mind on their relocation packages.

[G. David Felt]

I would say 33% will go for sure, another 33% will not and the others will be a mixed bag of some going some staying.

I moved to Texas and after a year of racist hate against my Korean wife and kids I left. Texas can burn for ever before I ever go back to that lousy place. Worst decision Toyota could ever do. It will be a mistake for them.

[riviera74]

I would say 33% will go for sure, another 33% will not and the others will be a mixed bag of some going some staying.

I moved to Texas and after a year of racist hate against my Korean wife and kids I left. Texas can burn for ever before I ever go back to that lousy place. Worst decision Toyota could ever do. It will be a mistake for them.

I would say 33% will go for sure, another 33% will not and the others will be a mixed bag of some going some staying.

I moved to Texas and after a year of racist hate against my Korean wife and kids I left. Texas can burn for ever before I ever go back to that lousy place. Worst decision Toyota could ever do. It will be a mistake for them.

Where in Texas, if I may ask?

[William Maley]

I would say 33% will go for sure, another 33% will not and the others will be a mixed bag of some going some staying.

I moved to Texas and after a year of racist hate against my Korean wife and kids I left. Texas can burn for ever before I ever go back to that lousy place. Worst decision Toyota could ever do. It will be a mistake for them.

I would say 33% will go for sure, another 33% will not and the others will be a mixed bag of some going some staying.

I moved to Texas and after a year of racist hate against my Korean wife and kids I left. Texas can burn for ever before I ever go back to that lousy place. Worst decision Toyota could ever do. It will be a mistake for them.

Where in Texas, if I may ask?

Plano, Texas

[Drew Dowdell]

I think he was asking where dfelt lived in Texas.

[G. David Felt]

I lived in Flower Mound Texas just north of DFW. Loved the house and the new community that we moved into and visiting the mid city area was fine, but Dallas especially North Dallas and the galleria was a nightmare.

I filed a complaint with Nordstroms as my wife and kids walked in and no one greated them, no one offered to help and this was the second time she had been in that same day as I was working when she called about rude people not willing to help her with back to school shopping.

Being born and raised in Seattle, I know what Nordstrom's service should be and I was not willing to accept what I saw especially after I walked through the door and had 3 people offer to help me just cause I am white.

Same thing in down town Flower Mound. On one end of the city is a barber and I took my son there. Walked in and the place was filed with black men and I was told they do not cut my son's kind of hair and I would have to try the other barber. So I went to the other place all filled with white men and they told me the same thing. Ended up driving south and finally finding a place to get his hair cut.

Texas self Segregates and then bullies everyone. The state was nice to visit when it was clear I was a tourist and they want your money you have to spend but living there was a nightmare and I could never recommend anyone move to Texas.

[Cremazie]

Plano describes Toyota better!

[Drew Dowdell]

[Drew Dowdell]

Over 4,000 employees, some percentage of which are LGBT, moving from states where their marriages are recognized to a state where those marriages are banned.

there is going to be some culture shock.

[roadwarrior]

Lived in DFW for 4 years now, and while I am white, I'm always on the lookout for the kinds of shenanigans that dfelt described. While there's the occasional story about dirty/racist cops (mainly Dallas and Fort Worth depts) and the ugly neighborhoods (pointing racism in every which direction, specifically), it's no worse than Northern California, where I grew up. That kind of stuff happens everywhere in this country, in pockets. Heck, I'm sure it's a worldwide phenomenon. I work with, and live near, people of every race, creed, and color...no problems.

Plano is a fine place for any company to set up shop...even if it is Toyota

EDIT: I should add that I live in a semi-rural part of Fort Worth, where you might expect some degree of that kind of B.S. based on certain stereotypes of the South in general...nada. Plano is a much younger part of the metroplex.

Should also note that Dallas proper is basically L.A. East in a great many ways. Not surprised you'd fine pockets of racial ugliness over there.