Community

Share your automotive expertise

2 Write a Blog Post

Rick Perry: Toyota to invest over 300 million in move to Texas

By DrivingSales News on Apr 29, 2014

Toyota is moving its North American Headquarters to Plano, TX. It’s a convergence. Three of the locations in Erlanger, KY, New York, NY, and Torrance, CA will fuse into what Toyota has called a, “state-of-the-art “ facility in Plano, TX. The Toyota location in Ann Arbor, MI, the “Toyota Technical Center” will be expanded as “direct procurement” jobs are moved from the Erlanger, KY location to York Township in Michigan. A new facility will also be built in Granger, KY to take on some 300 positions from the Erlanger location. The move, the transition of around 4,000 employees in total, according to a Toyota Press Release, will occur over a period of about three years.

Jim Lentz, CEO of the Toyota North American Region said, in a statement that, “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.  This is the most significant change we’ve made to our North American operations in the past 50 years, and we are excited for what the future holds.” 

Make no mistake about it: this move will save Toyota money. The corporate tax rate in California is 8.84%, 6% in Kentucky and 7.1% in New York. Toyota is trading those rates for both a zero percent corporate tax rate in Texas and a pledge from the Texas Enterprise Fund to the tune of a reported 40 million dollars. The (TEF) is a state-sponsored fund that “offers companies incentives to create jobs in invest in Texas.” Commenting on the move, Texas Governor Rick Perry said that, "Toyota understands that Texas' employer-friendly combination of low taxes, fair courts, smart regulations and world-class workforce can help businesses of any size succeed and thrive.”

Perry is not new to welcoming companies from other states into Texas. With a $300,000 grant from Americans for Economic Freedom, Perry has gone on the offensive in trying to bring companies to Texas. 60 companies have moved to Texas since July 2012, according to the L.A. Times and Perry has said that 50 companies are currently slated to either move to, or expand to Texas in because of the economic climate.

While Perry is succeeding in his efforts to bring  certain businesses to Texas, his plan may not work as well with another up and comer in the auto industry. Tesla, the electric car manufacturer that is constantly making headlines for legal battles, is expanding. The Elon Musk-owned Company will build a “Gigafactory,” which promises 6,500 new jobs in an undisclosed state. California is making a large push with reportedly promised environmental and economic subsidies. Nevada and New Mexico are also in the running to host the five billion dollar facility. Meanwhile, Texas and Arizona both want Tesla to build the factory in their state, but both states also currently outlaw the direct-to-consumer sales model employed by Tesla. We will keep you updated on both the Toyota and Tesla situations as both stories continue to develop.

 

Comments

This is a great strategic move for Toyota. With Nissan's exit from California a few years back the trend will continue and I have to believe that Honda, Mazda and maybe even a Detroit based OEM/headquarters will move large segments of their staff's to more tax and weather friendly climates. There is no doubt that California has a wealth of incredible talent but that can't overcome the burdensome high taxes and utility costs.

April 29th

Comments 1 - 1 of 1

You must be logged in to comment

Login Create an account

Add your comments:

   

DrivingSales News' Recent Posts

Related Posts

  • Resolving to Keep Resolutions for a Healthy Dealership

    As a new year approaches and everyone is thinking about resolutions, I humbly offer the following list as possibilities for Dealership Operators:Read post

  • #AutoJob Hunting Take Control Through Questions

    Interviewing for a job is one of the more nerve wracking experiences in life. The entire balance of the meeting is out of place from any other interaction we have with other people in our lives. The closest I can think of is a visit to a new doctor. You are typically made to sit in a waiting room and feel like you are being watched while you sit there. Forced to fill out byzantine forms, with information that is unnecessary to write out. Brought into a nondescript room and questioned, and then told we will be called with the results. I do not blame job seekers for disliking the interview process one bitRead post

  • The War on Happiness

    Happy Hannukah everyone, well tomorrow night anyway. Did that hurt anyone? I also intend to wish people a Merry Christmas as we get closer too. I am Jewish, but I also have half of my family and many coworkers that are Christian. Getting to December means awkward consideration of who we can wish a Merry, Happy, etc. Is it almost comical watching a manager, that is confident in every other area of their lives, all of the sudden get tongue tied when it comes to wishing the people around them peace and happiness. Why?Read post

  • Pop Quiz - Are you a Jay Prichett dealership or a Phil Dunphy dealership?

    ABC's Modern Family takes on a controversial subject: How painful (really) is the dealership experience. This popular show should have dealers everywhere thinking about their own consumer experience. If you missed it, here's a short recap as well as questions you should be asking yourself to make sure you are not a "Jay" dealer.Read post

  • Software vs Strategy and the Power of Insanity in the Face of Oblivion

    From a business perspective, there's really only one choice for marketing vendors. Software sells. It's easier to sell to businesses, particularly in the automotive industry. It's easier to sell a software company to a larger entity. Software is scalable. Strategy is too confining. Strategy relies too much on people. It isn't scalable in most circumstances. Unlike software, the more that dealers start using a particular strategy, the less effective it becomes. Anyone wanting to build a successful digital marketing company in the automotive industry should definitely choose building software over building strategies. To build a company that's based upon strategies is absolutely insane. I like being insane. It's good for the digestion. Car dealers have the potential luxury of being able to take software and build strategies around them. Vendors can as well, but it's much riskier to do so. There are several companies who were built around the concept of supplying like-gated contests ...Read post

  • New Year's Marketing Guide

    As 2014 quickly comes to a close, we begin to reflect on the year and look towards 2015 as a year of new opportunities and possibilities. But before we put 2014 behind us, there is still time to reach out and connect with current customers and bring new business to your door. Check out these three ways to end 2014 with a bang. Make a Resolution Everyone makes some kind of New Year’s resolution, whether it be to lose weight, stop a bad habit, or simply be a better person. Think about making a resolution to your customers. I’m sure you have standards in your Sales and Service Departments and may have some new standards that either customers have asked for or you’ve recently implemented. This is your chance to communicate these standards to your customers and make a resolution to them to provide top-notch service in the new year. Gather Feedback Along the same lines, the new year provides a perfect opportunity for you to ask customers for their feedback about your services, person...Read post

  • Why 24/7 chat? Because Instagram has passed Facebook in popularity

    Have you ever been to Starbucks at 11 when it closes and see the number of people still on their tablet or laptop? Once a novel technology that gave internet auto shoppers a novel way to communicate with the dealership, live chat, and especially managed chat, has become a viable source of additional auto sales leads for the sales team. Does it surprise you that there are now more posts on Instagram then on Facebook? The younger generation doesn’t even make time to fill in a Facebook update – do you think they are going to take the time to fill in a form. Having live chat available around the clock for your customers is one way to get a leg up on the competition, because people like to know there is a live person at the other end of the line, even if that line is a chat conversation. Today’s car shoppers are more impatient than ever, and not just when it comes to getting the ‘best price’. We even see chat conversations in which people click the chat button to ask for the d...Read post

  • Are you a commodity or are you human?

    Most of us at some point consider selling something. That first part-time job in retail to get the employee discounts, door to door during college (Cutco anyone?), and finally whenever we are tossed out into the employment pond and need something (hello auto, insurance, and real estate industry). For me it was all three, and I am still selling myself today. Why does going into sales have such a stigma? If you are scanning through job ads, are you skipping over the selling opportunities? Waiting to exhaust applying to every office, government, and manufacturing job, and then sending out applications to some sales job ad while you wait for your dream opportunity? Depending on how you can answer this next question you should either skip "trying" sales, or put it to the top of your list and forget any other career. Are you a commodity or a human?Read post