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Move to Texas Could Help Toyota Tackle Truck Market

Japanese maker struggles to gain ground in full-size pickup segment.

by on Apr.29, 2014

A TRD Pro Tundra goes through its paces.

One of the key motives for Toyota’s decision to move its headquarters and marketing staff from Southern California to Texas undoubtedly involves gearing up for another assault on the lucrative North American truck market, industry experts suggests.

While Toyota has gained ground in SUVs and CUVs, and dominates the small midsize pickup segment, it has failed to gain any real traction in the lucrative full-size pickup segment dominated by its Detroit rivals, despite spending billions on its Tundra line and the plant that produces it.

Beyond the Headlines!

Art Wheaton, an automotive industry expert and faculty member at Cornell University, said cost savings are only part of Toyota’s motivation for leaving Southern California. Suggesting the Japanese maker “has been woefully falling behind Ford, Hyundai and others in (its) plain or boring designs,” Wheaton said “The move, for Toyota, may help increase the willingness to be bold and take risks as a large turnover in employees is expected.”

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Toyota Confirms Plans to Move US HQ to Texas

Maker also plans major expansion at its Michigan tech center.

by on Apr.28, 2014

Toyota has had its U.S. headquarters operation based in California since 1957.

Toyota has confirmed plans to move its U.S. headquarters from the Los Angeles suburbs to a new complex it will build in the Dallas suburb of Plano. It also plans to significantly expand its technical center in the Detroit suburb of Ann Arbor.

All told, about 4,000 current employees will be impacted by the move from California and a separate facility in Kentucky – the announcement coming just days before a corporate restructuring was set to take effect. It remains to be seen how many of those employees will actually make the move when the Japanese giant relocates its U.S. manufacturing, sales and marketing, financial services and corporate operations.

Beyond the Headlines!

The maker says that by combining those operations under one roof, if will be in a position “to better serve customers and position Toyota for sustainable, long-term growth.” But according to reports that had begun leaking out prior to the company’s official announcement, the automaker also wants to slash its expenses and get out from under California’s strict regulatory environment.

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Toyota May Move Majority of California HQ to Texas

Japanese giant would follow rival Nissan’s departure from California.

by on Apr.28, 2014

Toyota's U.S. HQ has been in California since 1957.

Hoping to save money, Toyota Motor Co. reportedly plans to move a substantial portion of its U.S. corporate operations from Torrance, California to the suburbs of Dallas, according to several reports.

The move would be another blow to the Golden State which has struggled to retain automotive jobs over the years and would follow rival Nissan’s decision to flee suburban Los Angeles for a new headquarters near Nashville.

 

Breaking News!

Toyota is expected to inform its employees on Monday of the move, according to several reports, though the maker’s chief spokesperson, Julie Hamp, said that the company “does not comment on rumors and speculation.”

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Is Toyota Heading East?

Carmaker may move jobs to Michigan or Kentucky.

by on Nov.24, 2009

Toyota may move key headquarters functions, including product development, out of California.  They could land in either Michigan or Kentucky.

Toyota may move key headquarters functions, including product development, out of California. They could land in Michigan or Kentucky.

Is Toyota ready to walk out on California?

Rumors have been swirling for some time that the giant maker, now facing increased pressures to curb costs, may be ready to move at least some of its U.S. headquarter operations out of the Golden State.  Some jobs may be heading to either Michigan or Kentucky.

Those two states would make sense for a move.  Kentucky is ground zero for Toyota’s core “transplant” assembly operations, while Michigan – though home to its Big Three rivals – has become a critical technical center for the Japanese maker.  Toyota recently opened a major engineering facility in the fringe western suburbs of Detroit that included a new test track.

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If a move does take place, it wouldn’t be the first.  Nissan moved its entire U.S. headquarters operations out of California, several years ago, and last year opened up a permanent new facility outside Nashville, Tennessee.

The financial impact of such a move could be significant, especially for budget-constrained California.  Though the state has been seeing a continuing influx of migrants, it has been struggling to hang onto jobs.  That’s particularly true in the automotive sector.  Not only did Nissan move, but Toyota recently announced that it would close the NUMMI assembly plant, near San Francisco, that it had been operating as part of a joint venture with General Motors for nearly a quarter century.  GM pulled out of the partnership in the wake of its bankruptcy.

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