Toyota leaving California for Texas

April 29, 2014

Toyota_Logo_NewesToyota Motor Corporation is moving its North American headquarters from California to Texas. [LA Times]

The Japanese automaker has long located its sales and marketing headquarters in Southern California. It opened its first U.S. office in Hollywood in 1957 and has operated its marketing headquarters in Torrance since 1982.

But, the company now plans to move its U.S. sales offices to Dallas, where the cost of business is lower and Toyota’s American manufacturing plants are closer.

Torrance Mayor Frank Scotto said the move blindsided him.

“When any major corporation is courted by another state, it’s very difficult to combat that,” Scotto said. “We don’t have the tools we need to keep major corporations here.”

About 5,300 employees work at Toyota’s Torrence complex.

Recently, Texas Governor Rick Perry has recruited California companies to relocate to Texas. Approximately 60 California companies have moved to Texas since July 2012.

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This is probably the beginning of the mass exodus of business leaving California.

And the California legislature will act, but not by increasing incentives and reducing regulations…


Texas prop tax… 2%

California prop tax… 1%

Texas income tax… 0%

California income tax… Up to 13%

California home price… $300 to $1000/square foot

Texas home price… $100 to $400/square foot

Those Toyota employees who move to Dallas will actually be able to afford a nice home. The average worker can afford a three bedroom two bath house with a two car garage. They’ll find Dallas residents are not only from Texas, but from all over the nation and the world.

People who call Texas and Texans names, most likely do it out of ignorance and California arrogance. It’s fine to be proud of California, I am. But calling others names is pretty child like.

We in California need to be careful of regulations that add very little value but create very large burdens. In Texas, you can buy a house for what a building permit in California costs. And don’t kid yourself thinking those TX homes aren’t safe or good quality, because they are just as good as here.

Good luck Toyota, wake up California. We can be so progressive with new regulations and taxes, that only the retired wealthy will be able to live here.

Don’t think for a minute that it will Pecos Pete getting these jobs in Texas, repeat after me, TAY HAUS….and the ten gallon hats wearing shit kickers will be thankful for stepping into Brown acton.