Toyota will consolidate its North American operations in a move to Plano, TX, where the automaker will establish a new headquarters. Having just arrived in Northern Kentucky on the day of the announcement, the small city of Erlanger, KY, which is home to the company's TEMA (Toyota Motor Engineering & Manufacturing North America Inc.), was in a state of shock.
Local news outlets reported that the automotive company didn't say a word to the economic development groups in the area or hinted they'd like to negotiate a better deal. About 1,000 employees will be affected by the move.
Other locations that will be consolidated in the new Texas headquarters facility include Toyota Motor Sales, U.S.A., Inc. (TMS) in Torrance, CA that will affect about 2,000 employees; and certain employees at Toyota Motor North America (TMA) in New York, NY. Construction of the new headquarters is expected to be completed in 2016 or early 2017.
However, at the same time Toyota will expand the Toyota Technical Center (TTC) in Michigan to accommodate the relocation of approximately 250 direct procurement personnel from Erlanger, KY, to its campus in York Township near Ann Arbor. This expansion is part of an increased investment in engineering capabilities and will accommodate future growth in product development.