According to sources with knowledge on the matter, the Japanese automaker – the world’s biggest carmaker – aims to move big chunks of the US HQ from Torrance, California, to suburban Dallas.
While Toyota did not respond to the report with any comments, the people, which asked not to be identified discussing the matter, said Toyota will move to inform its employees as soon as today of the move.
“It would be very consequential for Southern California,” said Jack Nerad, executive market analyst for vehicle-price data service Kelley Blue Book in Irvine, California. “There might be some brain drain and tumult for employees, though it should be largely seamless to the consumer. This kind of thing can create some disruption of momentum.”
Toyota, at its Torrance campus in California has most of its 5,300 employees, working in sales, finance, marketing, engineering and product planning. Three of the people that talked to Bloomberg said Toyota’s new regional sales headquarters could be located in or near Plano, Texas, with the majority of Californian operations scheduled to move to Texas over a two-year period.
Besides the reported move, separately Toyota has disclosed it’s also restructuring the US marketing unit, as part of an efficiency plan – the company didn’t say how many jobs were cut but detailed that some of the people would move to other parts of the US unit and others would have a “voluntary exit program”.