Toyota Motor Corp.’s move to transfer its United States sales base to Plano, Texas, may bring $7.2 billion of economic activity to the city over 10 years, according to an analysis by Grant Thornton LLP. The amount includes $4.2 billion for payroll, direct and indirect spending, and sales and property tax revenue.
The Grant Thornton report was released May 12, when Plano green-lighted incentives for the Japanese carmaker, which announced in April that it would consolidate US sales, engineering and finance operations to Texas, from the states of California, New York and Kentucky.
The carmaker said that by 2018, it could have employed 3,650 full-time workers at Texas with an average salary of $104,000. Plano is offering $40 million of incentives to Toyota, and recently okayed $6.75 million of grants for the Japanese carmaker, with discounts on property taxes.
Toyota spokeswoman Carly Schaffner told Bloomberg in an e-mail that the carmaker appreciates support from Plano and its residents, saying that the Japanese firm is committed to being “a model corporate citizen." [source: automotive news - sub. required]
While the decision by Toyota Motor Corp. to move its North American sales headquarters from Torrance, California to Plano, Texas is see as a strategic and optimistic move, it was sad news for the residents of the city. This is mainly because Toyota is one of the two largest employers in Torrance, employing around 4,000 people or around five percent of the city's workforce.
Torrance Mayor Frank Scotto has told Reuters that he had been blindsided by the move. He remarked that the transfer would mean $1.2 million in lost tax revenues. He also didn’t discount the emotional toll and wider economic impact of the shift.
Scotta Toyota for all of its contributions to Torrance, including a recent $500,000 donation to help the construction of a new sports complex. Scotto said that the facility will be called the Toyota Sports Complex. Toyota Motor Sales, USA, Inc. (also known as TMS or Toyota USA) serves as the North American subsidiary of Toyota Motor Corp. and currently based in Torrance, California.
Toyota Motor Sales is engaged in the sales, marketing, and distribution of Toyota’s products in the US market.
Toyota Motor Sales was founded in 1957 in Torrance, California in Greater Los Angeles. Its headquarters opened in 1982, and in 2003, the Toyota South Campus in Torrance received the Golden Nugget Award. The California base of Toyota Motor Sales has six buildings, occupying 2 million square feet (190,000 square meters) of office space. [source: Reuters]