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California Blues
Toyota Goes to Texas

Toyota is leaving its current U.S. headquarters in Torrance, California, for its new home in Plano, Texas, a suburb of Dallas. The move is part of a large-scale restructuring, as it plans to consolidate much of its North American marketing operations at the new headquarters.

Reuters reports:

Toyota is the largest employer in Torrance, accounting for more than 5 percent of all jobs in the city with 3,837 workers in 2013, according to the city’s annual financial report. About 2,000 people from Toyota Motor Sales in Torrance will be affected by the move, and about 4,000 U.S. employees in all, the company said. […]

Toyota’s decision also means all three of the major Japanese carmakers will have stepped back from the state where they first got their footholds in the United States. Nissan Motor Co (7201.T) in 2006 moved most of its operations from Gardena, California, to Franklin, Tennessee, outside Nashville. Last year, Honda Motor Co (7267.T) decided to move a number of executives from Torrance to Columbus, Ohio.

[Texas Governor Rick] Perry has made luring businesses from other states a priority, making personal recruiting trips to sell what the Republican touts as a superior business climate, particularly lower taxes. California and New York State, both with Democratic governors, have been particular targets for the effort.

Toyota’s chief executive for North America, Jim Lentz, said Perry had no role in Toyota’s decision to move.

The move will also be a blow for the job market in Los Angeles, of which Torrance is a suburb. L.A. has persistently high unemployment and already trails the rest of the country in job creation. Recently, a commission of city leaders charged with finding solutions to the city’s ongoing problems failed to come up with any big ideas.

Even if Rick Perry didn’t have a hand in this deal, Toyota must have been attracted by the business-friendly environment and low cost of living in Texas. California has been steadily losing business to surrounding states, but the flight of Toyota, with its progressive street cred, is an indication of just how bad things are.

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  • Jagneel

    why not move all the way to the bottom? Mississippi? Alabama?
    The bottom in bottom line is the race to the bottom anyway.
    Go where workers have lowest pay, least rights, where you can pollute most and get the most freebee from the tax payers.

    • rheddles

      Another racist who wants to ignore reality. Companies will not make a lot of money if they build a product in a location with the highest costs, not only labor, but real estate and taxes. Companies have to obey the same pollution laws where ever they go in the US. If companies are moving from high pollution areas to low pollution areas, they should be applauded. If governments want to incent companies to relocate, good for them. That is how you move up from the bottom. And if Caliphornia wants to drive out middle class job generating businesses, well they can live with the consequences. Nice weather and the chance of earthquakes can only count for so much. Hasta la vista.Enjoy life at the bottom

    • Dan

      Someone should pass a law against companies “racing to the bottom” like that!

    • Gene

      Agreed. It’s much, much better that the impoverished potential Toyota employees of Mississippi or Alabama remain jobless and poor. The maintenance of your talking points is clearly much, much more important.

    • Diws

      Spoken like a deep blue dinosaur

    • LivingRock

      Yet workers are moving to Texas in droves. The key word there being ‘workers’. B/c they can actually still get a working class job in Texas.

      • Jim__L

        … and the middle class is moving there too, because places like Silicon Valley can’t actually support anyone at a middle-class life (house, yard, kids, vacations, spare time) unless they’re in the top 95%+ of earners.

  • Pete

    Another win for a right-to-work state and a loss for a union one., This is good.

  • S.C. Schwarz

    And does anyone think the left will learn anything from this? Read Jagneel’s comment to see how a right-thinking leftist reacts.

  • Breif2

    The conclusion is obvious: boycott Toyota!


  • Jacksonian_Libertarian

    “Recently, a commission of city leaders charged with finding solutions to the city’s ongoing problems failed to come up with any big ideas.”

    Here’s a big idea, Cut Taxes and Regulations, and become business friendly.

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