Filed under: Plants/Manufacturing , Toyota They say everything is bigger in Texas, and apparently that includes the Toyota’s effect on the economy. The giant Japanese automaker’s new headquarters in Plano, TX, will add an estimated $7.2 billion to the state over the next 10 years, according to a new study commissioned by the city and cited by Bloomberg . The benefits appear to be an absolute steal compared to the direct incentives that Plano and the state are giving Toyota . The report finds that by the time the automaker’s campus is complete in 2018, it could have 3,650 full-time workers there at an average salary of $104,000. The city has prepared $6.75 million in grants, plus property tax discounts, according to Bloomberg . In addition to that, the state is offering the business $40 million in incentives from its Texas Enterprise Fund. This is still a fraction of what Toyota is estimated to bring in. Toyota announced in April that it would move its US operations to Plano after being headquartered in California since 1957. The move affects thousands of employees from the sales and engineering divisions. The first workers will arrive there this fall, but Toyota will eventually have a whole campus in Plano by late 2017.
Filed under: Hirings/Firings/Layoffs , Toyota It’s official, Toyota is relocating its US operations to Plano, TX . And it won’t be a symbolic ‘all ranch and no cattle’ gesture – the Japanese automaker, whose headquarters have been in California since 1957, has decided to base nearly all of its operations in the Lone Star State, including much of its engineering, finance and sales and marketing teams. The move, which will see the establishment of a new headquarters campus in the Dallas suburb will not only affect employees at the company’s current Torrance, CA Toyota Motor Sales USA campus, it will also touch the lives of thousands of employees at the company’s other operations, including 1,000 workers at Toyota Motor Engineering & Manufacturing North America in Erlanger, KY and some New York-based staff as well. The Toyota Technical Center in Ann Arbor, MI is not facing relocation, however, and it actually stands to gain responsibilities as Toyota overhauls its US org chart. Toyota says that its reorganization will affect about 4,000 employees in total. According to Automotive News , while Toyota is adopting an “‘everyone is invited’ stance for the relocation,” some attrition is expected from employees who aren’t interested in relocating southward from the Golden State. For its part, the automaker is reportedly making expenses-paid visits to Plano available to full-time staffers and spouses to help them make the relocation decision, as well as a lump-sum payment if they decide to go through with the move. The move is expected to realize massive cost savings for Toyota, including in areas of taxation, real estate and employee cost of living. It is also expected to allow for consolidation in areas like human resources, information technologies, legal and accounting. Critically, the move will put the company closer to its North American manufacturing base, which has been increasingly concentrated in southern states, including Texas.