Sources say Toyota fleeing CA, taking 5,000 jobs to more business-friendly Texas
BY California’s inhospitable tax policies may have struck again, this time costing Los Angeles one of its largest employers. According to multiple sources close to the situation, Toyota will be relocating its US headquarters from the LA suburb of Torrance to Plano, Texas.
The company has yet to notify its employees of the news, but is expected to do so Monday, followed by a public announcement. While it’s unlikely that Toyota, which is ranked 8th on Fortune’s Global 500, will directly cite taxes as the reason for its relocation, it should come as little surprise that the financial burden of operating in California – both on the corporation and its employees personally – played a major role.
A number of early stage entrepreneurs, including Pando contributor Bryan Goldberg, have discussed publicly their decisions to start companies outside of California. Now, it appears that frustration has moved its way up the economic food chain.
It wouldn’t be the first time. Nissan made a similar exodus in 2006, finding a more welcoming home for its US headquarters in Tennessee, where local and state governments rolled out the tax incentive red carpet. Honda too has shifted its headquarters from Carson, CA to Marysville, Ohio, but retains a dwindling LA operation. Persistent rumors, however, suggest that it may eventually shutter its California presence entirely.
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