Toyota has recently moved all its different parts of the firm that were spread in the US, having its main site in Southern California, to Plano, Texas. There are several advantages for Toyota to make such a big change and concentrate all their operations under the same roof, and that indicate the change the company has had in the last couple decades from being just an importer, to being a producer with a larger market in the US than in Japan; some of these are increased effectiveness and efficiency, added to the cut in jobs (fixed costs) from the people that are not willing to transfer.
But, why Texas?
The answer is as simple as: zero state income tax, lower housing and living costs, more favorable labor laws, the chance for every employee to arrive under the same circumstances, and a non-redundant $40 million incentive from the government.
This moving also shows how firm that do not have their roots attached to Michigan, like Ford or GM, are not only not choosing git to settle down, but they are also starting to move away from this area that once was the world’s capital of the auto industry.
It would be interesting to see what other firms such as Federal Mogul do in the next years if the industry starts moving away from Michigan.
Would Texas and its economic advantages for firms become the new motor state?
Source URL: http://www.autonews.com/article/20140505/RETAIL01/140509934/whats-so-tempting-about-texas-to-toyota