In an effort to cut costs and reorganize operations, Toyota is considering moving some jobs from California to states in which it would be cheaper to operate. Toyota currently has operations in Michigan and Kentucky, and both states are being considered for a possible destination.
According to Bloomberg, the possible job shift would involve US product planning, accounting and data services jobs from its sales company that is located near Los Angeles.
The likely final destinations currently up for consideration are Ann Arbor, Michigan and Erlanger, Kentucky, which have North American engineering and assembly plants already there.
While Toyota has not made any public plans to officially and completely leave California, Toyota is aiming to reduce costs wherever possible while battling a sales slump due to the current recession and rising unemployment. For 2009, Toyota has suffered a 26 percent drop in sales with two months left to go.
In addition to the dismal economic condition in Toyota’s traditionally most profitable US market, Toyota is also facing competition from fellow importer Hyundai Motor Company, as well as increased conquest sales rates by GM and Ford from import brands.
In 2008 Toyota suffered its first ever net loss, for a total of $4.4 billion. For 2009 Toyota is forecasting a net loss of $2.2 billion, and has Toyota’s President, Akio Toyoda saying that Toyota needs to listen to consumers and produce better cars or face “irrelevance or death.”
