Toyota is moving from California to Texas - Granite Grok

Toyota is moving from California to Texas

Rick Perry - decentralizationAnd so did my company just a bit ago! Yeah California – you moved a company that US-based itself in California since it came here from Japan in the 1950’s.  I guess the mounting taxes and regulations made it easy to hear the siren sound of Gov. Rick Perry’s call for a more business friendly environment in Texas.  At some point, that IS going to make a difference.  So, Texas / Rick Perry 1 – California / Jerry Brown 0.  From the LA Times (emphasis mine, reformatted):

Toyota Motor Corp. plans to move large numbers of jobs from its sales and marketing headquarters in Torrance to suburban Dallas, according to a person familiar with the automaker’s plans.  The move, creating a new North American headquarters, would put management of Toyota’s U.S. business close to where it builds most cars for this market. North American Chief Executive Jim Lentz is expected to brief employees Monday, said the person, who was not authorized to speak publicly. Toyota declined to detail its plans. About 5,300 people work at Toyota’s Torrance complex. It is unclear how many workers will be asked to move to Texas. The move is expected to take several years. 

…The U.S. branch picked Los Angeles for its first headquarters because of proximity to the port complex — where it imported cars — and easy airline access to Tokyo. As Toyota grew, it opened its national sales and marketing headquarters in Torrance in 1982. The complex, built where its parts distribution warehouse was once located, now has 2 million square feet of office space.  But today, about 75% of the Toyota branded vehicles sold in the U.S. are built in Americamany of them at plants in Texas, Mississippi and Kentucky.

…Fritz Hitchcock, who owns several Toyota dealerships in Southern California, said Toyota’s decision won’t affect local car sales. But he said it represents an “indictment of California’s business climate.

Ah yes, the power of Federalism – the ability to have 50 laboratories of experimentation that can be examined and acted upon.  At this point, it seems that some of the results are known – and not looking good. We’ve seen the results of outflows of people from the Blue States to the Red States and now we see the companies marching.  Another high tax / high regulation state, New York, realizes that it is next – touting a series of ads that promise no taxes for 10 years in certain designated areas.  Er, have they figured out the clue – but are unwilling to admit that their present trajectory for the rest of the State is wrong?

And it all comes down to Liberty – how free are people and companies able to make their own decisions for the own well-being?  Or where has that Liberty been taken by Governments that over-Nanny and tax?  It’s always comes down to base Principles, doesn’t it?

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