Details on Toyota North American Reorganization: California & Kentucky Lose, Texas & Michigan Gain
Toyota has released a statement (below the fold) on the reorganization of its North American business operations and the consolidation of most of those functions at a new regional headquarters to be built in Plano, Texas. Approximately 4,000 employees of four different business units will be relocated, mostly to Texas, though some functions will be relocated to Toyota facilities in Georgetown, Kentucky and near Ann Arbor, Michigan. Toyota Motor Sales, U.S.A. and Toyota Financial Services in Torrance, Calif., Toyota Motor Engineering and Manufacturing North America in Erlanger, Ky., and Toyota Motor North America in New York City will be moved between now and early 2017, when the Plano campus and new facilities near Ann Arbor and Georgetown are expected to be completed.
It appears that Toyota Racing Development, and the technical and design facilities in California will not be moving. Overall, though, California will be losing thousands of jobs. Kentucky will also lose some Toyota positions. It appears that the Erlanger, KY facility will be closed, with 300 production engineering positions being moved to a new facility that will be built near Toyota’s Georgetown assembly operations in the same state. The 250 purchasing jobs currently at Erlanger will be relocated to another new facility that will be built on the grounds of the billion dollar plus Toyota Technical Center in Saline, Michigan, near Ann Arbor.
Toyota statement:
Torrance, Calif., Erlanger, Ky., New York, N.Y., and Ann Arbor, Mich., April 28, 2014 –Toyota today announced that it is establishing a new headquarters in North Dallas (Plano), Texas for its North American operations in a move designed to better serve customers and position Toyota for sustainable, long-term growth.
Toyota will also build a new facility on TTC’s York campus (subject to final approval of state and local incentives) to accommodate approximately 250 direct procurement positions currently based at TEMA in Erlanger.
- Toyota regional field offices and Lexus area offices
- Operating units in Canada, Mexico and Puerto Rico
- Toyota Financial Service’s regional offices, sales offices, service centers and its bank
- Calty Design Research facilities
- Toyota InfoTechnology Center
- Toyota Racing Development
- AirFlite Inc.
- Logistics Services Field Locations
- Distribution centers
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"Jim Lentz, who was named Toyota’s first chief executive officer for the North America Region in 2013, said: “With our major North American business affiliates and leaders together in one location for the first time, we will be better equipped to speed decision making, share best practices, and leverage the combined strength of our employees. This, in turn, will strengthen our ability to put customers first and to continue making great products that exceed their expectations. Ultimately, enabling greater collaboration and efficiencies across Toyota will help us become a more dynamic, innovative and successful organization in North America." I almost threw up after reading all of the upper manangement catch phrases worked into just three sentences.
It is both humorous and sad to read all of the hate about California spewed by those who do not live there, and probably never have lived there! How do those folks know so much about living conditions in CA? Good question. As someone who grew up in Cincinnati, worked a couple of years in Detroit, spent 12 years in Minneapolis and has lived in Southern California since 2007, I can only say this: Everything that you have ever heard about California is probably true. The bad stuff AND the good stuff.