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.”
11/24, 10:27 AM
posted by:
reedfast
ooooh,
California beach bombers are not gonna like swimming in lake superior on a monday morning!
11/24, 10:44 AM
posted by:
excrement_between_my_toes
OH god! Can you imagine the local pharmacies in California stocking up on anti depressant pills for these poor people who face the prospect of moving the that dung hole place known as Michigan? Cold, grey, economically depressed and whites being the minority!! Better buy your bullet proof vest and don’t bother buying a nice car, get the ugliest cheapest rust bucket you can find, thats your only protection from being targeted for car jackings.
11/24, 10:53 AM
posted by:
Road_AMS
Excrement (no, I’m not making fun of you), apparently you’ve never been to Ann Arbor. White people are definately not a minority. It’s actually a thriving college town…if such a thing technically exists. You have about as much chance being car jacked as the Lions have of winning the Super Bowl.
11/24, 11:03 AM
posted by:
NoMoreGM4Me
Is working at a Toyota office in Michigan like working at an abortion clinic in the rest of the country?
11/24, 11:24 AM
posted by:
05Z88Path
Yep. Screw California, move to a friendlier business state!
11/24, 11:45 AM
posted by:
orangecones
I don’t know why nobody commented on Toyoda’s quote yet. Perhaps a sign of better things to come? I mean, if the CEO recognizes their current lineup is worthless, there gotta be gears turning to make it not so.
11/24, 11:48 AM
posted by:
veeride
excrement_between_my_toes……v you should edit name to ’sh!t between my ears’! Seriously, what did you smoke before typing that? Did your mama drop you often as a baby?
the state of califonia has more problems in many ways then Michigan, yes were in a **** storm of economical problems, but EVERY state is,,,, and when we level out…. we will be fine. NO other state has it like we do ALL four seasons (5 if you include construction)! plus, this is where cars should be made and designed, not in cali, thats for tofu and surfing!
11/24, 11:50 AM
posted by:
veeride
oh oops! i work in Ann Arbor too, and its awesome, very eclectic! Very unique. great recycle programs, and AWESOME city parks, arbors, music venues, etc!
Oh and send the people relocating to me I sell real estate!
11/24, 11:54 AM
posted by:
CiNO
I hope they also kill LA design center.
11/24, 12:01 PM
posted by:
carstuff
guys, there are certain posters we just need to ignore. Sooner or later they will get tired of typing to themselves and leave. There are some very sad individuals out there and we should just pray they get better and rejoin the human race.
11/24, 12:28 PM
posted by:
excrement_between_my_toes
I’ve been to Detroit, I have honestly felt safer in Bogata Colombia. Driving around Michigan makes me feel depressed seeing all those houses made with aluminum siding, aging rust buckets barely cruising the streets, and highways that look like they’ve been bombed. No wonder I see so many SUV’s in michigan, its what you need to drive over the potholes.
11/24, 12:39 PM
posted by:
Road_AMS
Again…we’re talking about Ann Arbor NOT Detroit. And funny you should mention, I’ve been to Bogota too…when you have to have armed guards at the shopping center parking decks…you’ve got many more problems than Detroit does.
11/24, 12:59 PM
posted by:
steve333
Dude, I’m a minority in California already! White folks are an endangered species, thanks to Ted Kennedy and his ilk.
11/24, 1:59 PM
posted by:
yarddog82abn
Hay I’m also in California, Steve333, sorry, my parents could not afford a T.V. back in the day…
As for Toyota, GOOD BYE! And take your $395.000 Super Car with you!!!
You can buy “3″ Nissan GTR’s for the price of that thing…
11/24, 2:00 PM
posted by:
yarddog82abn
Ohoo… and if you like I can help you pack…
11/24, 2:09 PM
posted by:
Smegley Wanxalot
Best move Nissan ever made was bailing on Cal. About time Toyota follows suit.
Cal is an overhyped shìthole, and before anyone gives me crap note that I am a native San Diegan who lived in that state most of my life. Everyone I knew there said “Cal is the best – we’ll never leave” until reality took over, one by one we left, and now that we’ve all got more life experience everyone of us will never move back (occasional travel is stomachable). Since it is now worse with their unfriendly business environment and taxes out the butt only a retard would stay there.
11/24, 3:05 PM
posted by:
DenverGuy217
What a shame. All that time spent learning Spanish in CA gone to waste
11/24, 3:33 PM
posted by:
KarLoveBoy88
Toyota is following GM’s footsteps. Dont do it!!!
11/24, 8:12 PM
posted by:
leftwingagenda
ted kennedy and his ilk? what the **** is that supposed to mean? are conservatives lining up at the border and shooting immigrants trying to cross into the country? do you know how many millions of immigrants crossed the border in the 8 years bush “and his ilk” where in charge?
****ing clueless mother****ers…wow…idiots…
11/24, 9:52 PM
posted by:
Borat
Lefty, Bush (and all his family) is fluent in “immigrant language” and has a “chocolate” nephew. Do you have “chocolate” family members and speak fluent Spanish?
11/25, 5:49 PM
posted by:
ktulu
Texas=hu Cali
Cali=nu Michigan
Dwrtpoy= bnww Beirut
12/04, 11:19 AM
posted by:
HDSRED
I am surprised what the real underlying reason why toyota leaving their only California plant is. It was a joint venture plant with GM. GM announced that they will be withdrawling. It was the only plant toyota had that had the UAW in it. toyota does not want the UAW for obvious reasons. So this is their chance to break the contract, move out of state.
http://www.autoblog.com/2009/07/28/only-in-california-uaw-fights-to-save-toyota-plant/