Why It Makes Sense For Toyota To Leave California For Texas

Forbes ^ | 04/28/2014 | Dale Buss

[SeekAndFind]

For Japanese auto brands, the logic of keeping their U.S. sales and administrative arms in California is breaking down under the outsized penalties of conducting business in the Golden State and the changing dynamics of the North American automotive industry. So Toyota is leaving, according to Automotive News.

And where is Japan’s biggest automaker relocating its sales and marketing operations in America? Why, North Texas, of course. The move MOVE -5.08% to Plano, Texas, will involve most of the 5,000 managers and employees at Toyota’s current Torrance, Calif., headquarters, the magazine said.

Texas Gov. Rick Perry apparently didn’t even have to make a recruiting trip to southern California to get Toyota to do this, although he has helped lure plenty of companies with that gambit over the last several years.

And yet Texas has scored one of the biggest prizes so far in its very focused, state-on-state battle with the administration of Gov. Jerry Brown to get plum companies now headquartered in California to abandon the bluest state for the reddest one.

Clearly, Perry caressed a trump card in the fact that Toyota has enjoyed a deep relationship with Texas through its $2.2-billion truck-assembly complex near San Antonio.

Plus, the fact is that, as Toyota has become a more U.S.-centric company with important assets all over the country, it makes sense for the Japanese market leader to distribute its operations in a new way. Toyota’s 14 North American manufacturing facilities now build 71 percent of the vehicles the company sells in the United States, up from 55 percent in 2008.

[Resolute Conservative]

I don’t question their work, it is what they bring with them as far as political persuasion. The last place I worked was full of under 30’s, foreigners, and yankees that all worked hard, but I could not stand the daily trashing of my country from the foreigners and the constant left wing points of view and ideas on how to change things here to be like where they just fled.

[jttpwalsh]

Thanks for the reply; I understand your point of view. My experience, here in California, as one of that 40% who produce, so that 60% can stand idle is, that the working folks, here, are sick of it. California is a beautiful place, but the SF-LA voting block has turned common sense on it’s head, and is trashing the place, so to speak. Many of us remain, due to family, or other obligations, but begrudgingly so. Many others wish to get a clean start, somewhere else, in ‘Free America’. My sense is, that the working folks who relocate to Texas will be mostly pleased, and become good Texans. FREEgards !