Toyota will relocate three of its North American headquarters to a single location in Plano, Texas, a move that will affect 4,000 employees, the company announced Monday.
Over the next three years, Toyota will consolidate its headquarters for manufacturing, sales and marketing, and corporate operations to a single Plano campus, a company release said
. In addition, Toyota’s North America finance business headquarters will move to the campus, but that won't happen until 2017.
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In addition to creating a Plano location, the car company will expand its Toyota Technical Center in Michigan, which will involve moving procurement processes currently located in Erlanger, Ky., to the York Township near Ann Arbor.
“This expansion is part of an increased investment in engineering capabilities and will accommodate future growth in product development,” the Toyota release said.
The current locations that will be impacted by the move to Texas are Toyota Motors Sales USA Inc., in Torrance, Calif., which has about 2,000 employees; the Toyota Motor Engineering & Manufacturing North America Inc. in Erlanger, which affects about 1,000 employees; and smaller locations at Toyota Motor North America in New York, N.Y. The Toyota Financial Services relocation from Torrance, Calif., will eventually affect 1,000 employees.
“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,” said Jim Lentz, who was named Toyota’s first chief executive officer for the North America Region in 2013. “This is the most significant change we’ve made to our North American operations in the past 50 years, and we are excited for what the future holds.”
WCPO in Erlanger called the move a “major blow to the economy of Northern Kentucky.”
“Obviously, we are extremely disappointed by Toyota’s decision. We would have welcomed the opportunity to discuss options with Toyota, but we will now turn our attention to preparing for this transition," Kentucky Gov. Steve Beshear said in a statement.
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