The Headquarters Will Begin Relocating Sometime This Year
Japanese automaker Toyota Motor Corp. announced that it will be moving its North America headquarters from California to Texas.
Toyota said that it is going to move in phases over the next three years. This will allow it to consolidate the company's North American division into one single area. The company will break ground on a new facility later this year in Plano, Texas. The state-of-the-art campus will host approximately 4,000 employees from the HQ division, engineering, and finance section.
The company will also be sending employees to other states as well. Pending approval of a new facility on campus -- Toyota will send 250 employees from the technical center to Ann Arbor, Michigan.
The move will begin this year -- with employees staying at temporary office space for the time being. It is expected to have completed the entire shake-up by the end of 2016 -- and will have all of its key personnel closer to manufacturing facilities located throughout the Midwest.
Jim Lentz, The CEO for Toyota in North America, said the move will allow the company to ensure it has a quicker decision making process in the future. This move is meant to enable the North American division of Toyota Motor Corp. to become more self-reliant. This came after talks with Japanese President of the company Akio Toyoda, in which he asked Lentz to find more productive ways to make the company flourish.
"This is the most significant change we've made in our North American operations in the past 50 years."
"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," Lentz said.
According to CNN Money, Texas has offered the company 40 million dollars to move to the state. This comes at the heels of Governor Rick Perry's announcement earlier last week that he was driving to lure businesses to his state for economic growth. The money comes from the states Texas Enterprise Fund.
Lentz informed employees on Monday, April 28th inside of a large conference room in Torrance, California. He said Toyota plans to keep on more employees than Nissan did during its move from California. The company will also give employees 2 to 3 years to plan ahead on whether they want to relocate to Texas or find other employment.