While yesterday’s announcement that Toyota aims to move its California headquarters to Texas mainly affects employees from the sunny state, the move also means other employees from New York or Kentucky would settle in the new location.
The Plano, Texas shift could affect around 2,000 people in California, 1,000 employees from the Kentucky engineering and manufacturing division, but also people from the holding company in New York. Since 2017, the Japanese company also plans to relocate around 1,000 people from its finance company to Texas, while the new headquarters construction should be completed in late 2016 or early 2017.
“This is probably the most significant change we’ve ever had” in North America, Lentz said in an interview. “In the next three years we are going to bring three separate entities to the same headquarters for the first time.”
Toyota is expected by Texas officials to invest north of $300 million in the Plano headquarters, with state incentives of $40 million from the Texas Enterprise Fund. Lentz offered no details about the cost of the new facilities, although he acknowledged the biggest spending would come from relocating the employees.
The North American CEO also said cost savings were not the primary goal for the change, rather than boosting efficiency, as the sales, engineering and corporate units would maintain independence immediately after the shift, but “it may make sense over time to combine these three entities into one.”