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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- Theflyersfan Serious answer time...Honda used to stand for excellence in auto engineering. Their first main claim to fame was the CVCC (we don't need a catalytic converter!) engine and it sent from there. Their suspensions, their VTEC engines, slick manual transmissions, even a stowing minivan seat, all theirs. But I think they've been coasting a bit lately. Yes, the Civic Type-R has a powerful small engine, but the Honda of old would have found a way to get more revs out of it and make it feel like an i-VTEC engine of old instead of any old turbo engine that can be found in a multitude of performance small cars. Their 1.5L turbo-4...well...have they ever figured out the oil dilution problems? Very un-Honda-like. Paint issues that still linger. Cheaper feeling interior trim. All things that fly in the face of what Honda once was. The only thing that they seem to have kept have been the sales staff that treat you with utter contempt for daring to walk into their inner sanctum and wanting a deal on something that isn't a bare-bones CR-V. So Honda, beat the rest of your Japanese and Korean rivals, and plug-in hybridize everything. If you want a relatively (in an engineering way) easy way to get ahead of the curve, raise the CAFE score, and have a major point to advertise, and be able to sell to those who can't plug in easily, sell them on something that will get, for example, 35% better mileage, plug in when you get a chance, and drives like a Honda. Bring back some of the engineering skills that Honda once stood for. And then start introducing a portfolio of EVs once people are more comfortable with the idea of plugging in. People seeing that they can easily use an EV for their daily errands with the gas engine never starting will eventually sell them on a future EV because that range anxiety will be lessened. The all EV leap is still a bridge too far, especially as recent sales numbers have shown. Baby steps. That's how you win people over.
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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.