Toyota moving out of CA to TX

[an]

http://www.autoblog.com/2014/04/28/toyota-moving-us-headquarters-plano-texas/

I wonder how many other large business(es) are following Toyota.

[spdrun]

Race to the bottom. Hope some other product defects are unearthed and they get hammered.

[The-Shoveler]

Won’t be long before TX, starts looking like CA, Smog, congestion, budget defects.

And a population screaming for regulation It’s already starting to happen.

Only with high heat, humidity and the occasional tornado.
Luck to them.

[Coronita]

AN, it’s not surprising.

Before then, Hyundai already moved their offices…
And before them, Nissan already moved their offices as well.

The problem is that it really doesn’t make sense for Toyota to have headquarters in CA when manufacturing is in another state, and Toyota hasn’t been able to make headwind into building on manufacturing in CA with both the cost of labor and cost to to business, more stringent regulations, and the incentives/bones that other states throw at them.

I think we’ll probably see the wealth gap get even bigger in CA, over the next decade…

FWIW: I’ve seen a change in the area around Torrance. About 10-20 years ago, the are was filled with companies with japan that rotated their ex-pats in and out of that area… It was the easiest rental market to be in… Fast forward today… Many of those said companies are moving/relocating.. and it’s not as good as it was before…The demographics have definitely changed….

You did get the previous post about Websense and ActiveNetwork being relocated out of SD?

[The-Shoveler]

One thing we saw with the defense industry moving in the late 80’s early 90’s is the talented ones stayed and started new companies (most of the high tech start-ups in orange county started from that),
I would not be happy moving to Dallas area, but whatever floats their boat.

[an]

[quote=flu]You did get the previous post about Websense and ActiveNetwork being relocated out of SD?[/quote]Yes I did. But Toyota is a lot bigger than Websense and ActiveNetwork. It’s almost like if QCOM leave SD for Dallas.

[The-Shoveler]

Not quite, They are not even close to the largest employer in that area.

There is the big refinery, a lot of import/export and shipping etc….

It is quite Diverse as far as employment, it will be a big hit no doubt though.

As far as the rental market, I know someone who has several large apartment complexes in the area.
They are doing very well, never vacant long.

I would not worry too much about it.

Would you pick up and move to Dallas ?

Think about it.

[an]

Qualcomm is not the largest employer in SD. Toyota has over 6k employees in Torrance. That’s what I mean by similar. Sure, QCOM has 9k+ employees in SD, so it’s not quite as big as QCOM, but it’s a lot of high paying jobs.

[The-Shoveler]

Torrance is just part of a very large metro area several times larger population than the entire SD county.

Most of the people who live near the beach area’s don’t even work in Torrance.

It is very close to LAX, LA harbor, long beach harbor etc..
a very large Asian community and commute distance to much of OC as well.

Downtown LA is maybe 30 minutes,
Irvine maybe 45 minutes.

I would bet 2018 rolls around and most those people don’t move.

[an]

Not my point at all. I was trying to say that a major employer left the city. It’s more like QCOM leaving SD than Websense/ActiveNetwork leaving SD. Maybe QCOM is not as good of an example. Maybe Kaiser Permanente is a better example? It won’t devastate the area but definitely not fun for those who are involved.

I understand that Torrance is part of a larger metro and there are a lot of jobs in that area. But having 6k+ jobs leaving in 2-3 years isn’t fun, even if there are other opportunities around.

[The-Shoveler]

OK point taken, but its not going to be that big a hit for L.A. County.

There are more engineering Jobs in L.A. county than San Jose, San Francisco the entire bay area.

The City of L.A. on the other hand is in deep #!$@%
financially.

[The-Shoveler]

The only problem with L.A. is it is spread out all over the place.
Your next job is always going to be 40 miles away no matter close you live to work today.

and it will be in a far flung suburb (not in the City).

In L.A. at least, it’s the Burbs that are the real story.

The whole county is just a collection of far flung burbs.

[EconProf]

Toyota has weighed the pros and cons of CA vs. Texas, and decided to leave. They undoubtedly based their decision on the vastly different costs of living in the two states, the taxes, utility costs, regulations, and “business friendly” comparison, and work ethic of the two different populations. Most of all, they have to be future-oriented, so they looked at the political trends of the two states and decided CA was getting worse in all of the above categories relative to Texas. We voters picked our government, now we are living with the results.

[Coronita]

[quote=The-Shoveler]Not quite, They are not even close to the largest employer in that area.

There is the big refinery, a lot of import/export and shipping etc….

It is quite Diverse as far as employment, it will be a big hit no doubt though.

As far as the rental market, I know someone who has several large apartment complexes in the area.
They are doing very well, never vacant long.

I would not worry too much about it.

Would you pick up and move to Dallas ?

Think about it.[/quote]

My point was if you had deals with relocation people that specifically placed ex-pats from many companies like Toyota that rotated their employees from overseas, for which

(1) the ex-pats stayed for 2-4 years on rotation
and
(2) the company paid for all the rental during the entire duration of their stay

It was the easiest way to be a landlord for the long term, when the rent was guaranteed by companies like Toyota….Better than owning small attached rental properties in Mira Mesa with the plethora of responsible, higher paid tech workers from the Q and likes…. That hat-trick (in Torrance) is now going going going gone…

[Coronita]

[quote=The-Shoveler]The only problem with L.A. is it is spread out all over the place.
Your next job is always going to be 40 miles away no matter close you live to work today.

and it will be in a far flung suburb (not in the City).

In L.A. at least, it’s the Burbs that are the real story.

The whole county is just a collection of far flung burbs.[/quote]

Just wait until Tesla starts thinking about making cars in China…….

Oh wait…
http://gas2.Org/2014/04/21/tesla-model-s-made-china-3-4-years/

Well, look on the bright side… At least Toyota’s jobs still stay in the U.S…

One thing I learned from the fiasco at costco, is moving forward most Bridgestone tires bound from the U.S. are no longer going to be sourced from Japan…..but will be mostly from their factory Mexico

[Author]

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