US: Toyota’s North American reorganization prompts Tech Center expansion image

The Japanese automaker, the world’s largest auto company in terms of sales, is in a process of reorganization in North America, where its headquarters are gradually moving from California to Texas.

But the plans to reshape the local operations are far from over. The automaker has now announced a $32.5 million investment needed to expand its technical center in Ann Arbor, Michigan. The planned cost could be offset by as much as $8.6 million in incentives. The State of Michigan has approved a $4 million grant and York Township, near Ann Arbor, is also mulling a 12-year property tax abatement that could be worth the additional $4.6 million.

“We greatly appreciate the support and encouragement of the Michigan Economic Development Corporation, York Township and elected officials across the state as we continue to expand our presence in Michigan,” said Osamu Nagata, president and CEO of Toyota North America. “The Toyota Technical Center has been the driving force behind our engineering and R&D activities in North America for more than 35 years, so I am pleased and proud that we will continue to grow these operations,” he adds.

The expansion of the technical center is among the measures envisioned by the automaker as it moves its new North American headquarters to Plano, Texas. The Ann Arbor facility will receive 250 purchasing jobs from Kentucky. The procurement activities relocation is needed to boost Toyota’s operations in the US.