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Toyota to Move North American HQ from California to Texas

Manufacturing, Sales and Marketing, Corporate and Financial Services Headquarters to Relocate Into Shared Campus in Plano, TX; Technical Center in Michigan to Expand
April 28, 2014
Toyota is relocating its North American manufacturing, sales and marketing headquarters from the city of Torrance in Southern California to the North Dallas within the next three years.

Combined, the Japanese automaker’s decision to combine the three separate North American divisions along with corporate and corporate operations into a single campus in Plano, TX, will affect 4,000 employees, including 2,000 workers at Toyota Motor Sales, U.S.A., Inc. in Torrance; about 1,000 employees at Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA) in Erlanger, KY; and certain employees at Toyota Motor North America (TMA) in New York City.

Toyota's Torrance operations include at least six major office and warehouse buildings covering more than 100 acres along South Western Avenue and West 190th Street, according to CoStar information.

"It comes with sad news that we found out that Toyota Motors is moving their complete operation to Texas, and that operation will be moving at the end of 2017," said Torrance Mayor Frank Scotto said at a news conference Monday morning.

Texas Gov. Rick Perry, who has waged rhetorical battle for more than a year with his California counterpart Jerry Brown over the Lone Star State's efforts to attract businesses from the Golden State, hailed the $300 million capital investment in Plano.

"Over the past decade, Texas and Toyota have developed a strong partnership that has resulted in good-paying jobs for thousands of Texans," Perry said in a statement.

Toyota will expand its Toyota Technical Center (TTC) in Michigan to accommodate the relocation of direct procurement from Erlanger, KY, to its campus in York Township near Ann Arbor. The automaker called the expansion "part of an increased investment in engineering capabilities and will accommodate future growth in product development."

While the transition to Plano will begin with small groups this summer, the majority of the employees won’t move until construction of Toyota’s new Texas headquarters is completed in late 2016 or early 2017. The 1,000 employees of Toyota Financial Services (TFS) aren’t expected to make the move from Torrance until 2017.

Torrance "will aggressively try to remarket that property and get another major manufacturer in there," Scotto said.

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