Toyota Relocating Corporate Offices To Texas

[icenine]

http://www.politicalchat.org/showthread.php?t=7403


As far as Texas is concerned it also has the highest number of uninsured Americans in the United States.

[4-2-7]

Originally Posted by JCricket

Some interesting points. I am not sure they are all accurate, but well intended for sure.

I have to ask, is this a good thing that Toyota is moving to texas? I understand that it is for their bottom line. But what about the employees? When should a companies dedication to its employees trump increases to the bottom line? At some point "free market" no longer is free and the people become slaves to the businesses. I can't see when that is ever good. When a business has to move, that is one thing. To me it is a bit unethical to fire a plant full of people so that you can rehire a new group of employees at a lower wage. What it really amounts to is a company becoming a slave to the state.

I do think you are correct in the reasoning that Toyota did this for income tax, energy cost, real-estate costs, etc. So why not bring the employees with them to texas and share some of the savings with them. Thus they are more competitive and the employees win too? Just a thought

Toyota is moving for all those reasons. Employees are offered their jobs if they want to relocate. Their wage will stay the same, they get $10,000 to help in the cost of the move. No income tax in Texas so thats about a 20% raise. Home cost between the two locations is around 50% less. All cost of living expenses are less in Texas.

This is a huge win for employees if they are able to move. Even if they own a house here with a mortgage they can probably get out of debt.

[Rajoo]

Originally Posted by mpholland

They were going to move on their own. They had already narrowed it down to a few key places, Texas just happened to be willing offer a big financial incentive to boot.

Agreed. I have not looked into all of the details of the Texas transaction, but my intuition tells me that relocating current employees from California is not in the cards. Typically a state (or city) will offer incentives based on the number of "local" jobs they create.

[4-2-7]

Originally Posted by mpholland

They were going to move on their own. They had already narrowed it down to Denver, Atlanta, Charlotte, or Dallas.
Texas just happened to be willing offer a big financial incentive to boot.

I keep saying the incentive is mute as it's extremely lower than what other states offer big corporations.

[mpholland]

Originally Posted by BeamOn

Agreed. I have not looked into all of the details of the Texas transaction, but my intuition tells me that relocating current employees from California is not in the cards. Typically a state (or city) will offer incentives based on the number of "local" jobs they create.

Typically, corporate jobs are offered an opportunity to move with the company. Since this is a fairly extreme restructure, I am sure there will be some job loss as they are bringing folks from New York and Kentucky, as well as from California. I don't think there are going to be a whole lot of Texans working for Toyota for a while. It will however bring a lot of money to the local economy with several thousand new people spending money and paying taxes, plus a whole lot of Texans working to build the facilities.

[JCricket]

Originally Posted by 4-2-7

Toyota is moving for all those reasons. Employees are offered their jobs if they want to relocate. Their wage will stay the same, they get $10,000 to help in the cost of the move. No income tax in Texas so thats about a 20% raise. Home cost between the two locations is around 50% less. All cost of living expenses are less in Texas.

This is a huge win for employees if they are able to move. Even if they own a house here with a mortgage they can probably get out of debt.


What it really amounts to is a company becoming a slave to the state.

A slave to the state? I don't think I'll ever buy that one. I am 50 and have had numerous jobs. I have been through all sorts of downsizing, outsourcing, etc. it never had to do with the state, never. It did have to do with corporate profits, sometime needed, other times just plain greed.

[4-2-7]

The new campus will bring together approximately 4,000 employees from sales, marketing, engineering, manufacturing and finance. That includes 2,000 employees at the current headquarters in Torrance, Calif.; 1,000 employees at Toyota Financial Services, which is also in California; and 1,000 employees from Toyota's engineering and manufacturing center in Erlanger, Ky.


Texas Gov. Rick Perry said the state offered Toyota $40 million in incentives from the taxpayer-funded Texas Enterprise Fund. Perry, who made two visits to California to lure Toyota, said Texas expects Toyota to invest $300 million in the new headquarters.

Toyota said it will donate $10 million to nonprofits and community organizations in California and Kentucky on top of any existing commitments. Those funds will be distributed over five years starting in 2017.

Lentz said Toyota expects to keep more employees than Nissan did because of a generous package of benefits for those who stay. Any employee who wants to move will be given a relocation package and retention bonus, he said. The company is also offering to send employees and their spouses or partners to look around the new locations.

Lentz told employees about the changes Monday morning in a large conference room in Torrance. The announcement was broadcast elsewhere. He said it should help that most employees will have two or three years to plan their moves.

"They understand the business decision. It's a little bit of a shock in the beginning to people. They're trying to understand, what does this mean for me, what does this mean for my job," he said. "We made it very clear to them that we want them to come along with us."

By 1975, Toyota had become the top import brand in the U.S. It opened its current U.S. headquarters in Torrance in 1982.

Toyota sold 2.2 million cars and trucks in the U.S. last year.

Dominique said the placement of the headquarters probably won't have much impact on Toyota's sales in California, which is a critical market for the automaker. The Toyota Prius hybrid was the best-selling vehicle in California last year, and Toyota controlled 22 percent of California's new car market.

"From a consumer's point of view there won't be much change," he said.

http://abcnews.go.com/Business/wireS...3502134?page=2

[4-2-7]

Originally Posted by JCricket

A slave to the state? I don't think I'll ever buy that one. I am 50 and have had numerous jobs. I have been through all sorts of downsizing, outsourcing, etc. it never had to do with the state, never. It did have to do with corporate profits, sometime needed, other times just plain greed.

I wouldn't call this move "Greed" although a nice buzz word for some. Businesses need an environment to thrive they can't and will not stay in an area that hinders growth. It would just be stupid to stay at a location that cost you and your employees so much more to live and operate. I live in Cal so I know how high all the cost are climbing. I love the state that I was born and raised in but the bureaucracy is even pushing me out of here.

"Two dozen California companies have said they are tired of the business-bashing in Sacramento, along with the high taxes."

“I tracked for 2011, that 254 companies of all sizes and shapes and kinds left the state for primarily other states,” said Vranich, the president of Spectrum Location Services in Irvine.

He told KCRA 3 that companies leave California for three primary reasons: “High taxes, excessive regulations and the threat of really ridiculous lawsuits.”

[BlueStreak]

Originally Posted by JCricket

Some interesting points. I am not sure they are all accurate, but well intended for sure.

I have to ask, is this a good thing that Toyota is moving to texas? I understand that it is for their bottom line. But what about the employees? When should a companies dedication to its employees trump increases to the bottom line? At some point "free market" no longer is free and the people become slaves to the businesses. I can't see when that is ever good. When a business has to move, that is one thing. To me it is a bit unethical to fire a plant full of people so that you can rehire a new group of employees at a lower wage.

I do think you are correct in the reasoning that Toyota did this for income tax, energy cost, real-estate costs, etc. So why not bring the employees with them to texas and share some of the savings with them. Thus they are more competitive and the employees win too? Just a thought

It's not a manufacturing operation. Very few hourly employees involved.

Originally Posted by mpholland

If I get this correctly, these are corporate/management jobs and not manufacturing jobs so the union question is pretty much a moot point. I also get the impression that Toyota was going to move somewhere else to consolidate, no matter what. It sounds like Toyota is going to offer many of their current employees the opportunity to move to Texas and keep their jobs, which could work out even better for the employee as long as they are paid the same.

^What Mark said.^

Originally Posted by BeamOn

Texas to pay $10,000 for each Toyota job relocated
www.marketwatch.com/story/texas-to-pay-10000-for-each-toyota-job-relocated-2014-04-28

This is bribery. I don't believe that the state of Texas is paying this bribe to relocate workers from other states, especially California. Question I would have is if the cost of operation is so much lower than California, why didn't they move on their own rather than be enticed monetarily?

It is a rhetorical question.

Oh, yes, they would. In fact, states have been pitted against each other in the "race to the bottom" just as workers have.

Originally Posted by mpholland

They were going to move on their own. They had already narrowed it down to Denver, Atlanta, Charlotte, or Dallas.
Texas just happened to be willing offer a big financial incentive to boot.

And, that's what it's all about. Thing is, just as it is with workers, once states give so much tax incentive or possibly even start paying companies to locate in their states..........what is to be gained from their presence? Remember the thread about TEXAS crowing about having rapid job growth but struggling to figure out how they are going to pay for the infrastructure to support it? The discussions we've had about the millions of Americans who DO WORK, but can't support a basic cost of living with their wages?

Hello!

Welcome to America in the 21st Century. It's a Brave New World, isn't it?

Dave

[BlueStreak]

Dan,

That's the real "Big Picture", you half-wit.

Tell me. Do you really think this is good?

Dave