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Toyota’s move to bring Texas $7.2B in the next 10 years

Published by on May 16, 2014 in News Leave a comment

Toyota Plano Texas

Last month, Toyota North America’s CEO Jim Lentz announced that the company will move its US headquarters to Plano, Texas. The Japanese carmaker’s US operations are currently headquartered in Torrance, California and the move should save Toyota a lot of dollars in taxes and offer employees a lower cost of living, while Lentz also said that the Texas headquarters will be closer the carmaker’s production facilities in the South.

And while the mayor of Torrance declared himself to be extremely disappointed with Toyota’s decision, the city of Plano is in celebrations, because according to a recent study by Grant Thornton commissioned by local authorities, this move will bring the city benefits worth $7.2 billion dollars over the next 10 years. It’s true, the city offered Toyota a lot of benefits, such as $6.75 million in grants and property tax discounts, plus $40 million in incentives from the Texas Enterprise Fund. But that’s nothing compared to how much Toyota will bring to the Texas economy. First of all, Toyota will generate an economic activity of $4.2 million in payroll, direct and indirect spending and property tax. The company will start moving its workforce from California, and by 2018, around 3,650 employees are expected to work here, with an average salary of $104,000.

Source: Bloomberg

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