Toyota moves thousands of jobs from socialist California to capitalist Texas

California is a liberal hell of regulations and high taxes. So, a story like this one from the ultra-leftist Los Angeles Times should come as no surprise. (H/T ECM)


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.

[T]oday, about 75% of the Toyota branded vehicles sold in the U.S. are built in America — many of them at plants in Texas, Mississippi and Kentucky.

Why is this happening? Here’s why:

Frank Scotto, Torrance’s mayor, said he had no warning of Toyota’s decision. He said he did know that the automaker planned a corporate announcement for Monday.

“When any major corporation is courted by another state, it’s very difficult to combat that,” Scotto said. “We don’t have the tools we need to keep major corporations here.”

The mayor said businesses bear higher costs in California for workers’ compensation and liability insurance, among other expenses.

“A company can easily see where it would benefit by relocating someplace else,” Scotto said.

Think that this is an exception? Think again:

Occidental Petroleum Corp. said in February that it was relocating from Los Angeles to Houston, making it one of around 60 companies that have moved to Texas since July 2012, according to Texas Gov. Rick Perry.

Perry last month visited California to recruit companies. The group Americans for Economic Freedom also recently launched a $300,000 advertising campaign in which Perry contends 50 California companies have plans to expand or relocate in Texas because it offers a better business climate.

Like these other companies, Toyota could also save money in an environment of lower business taxes, real estate prices and cost of living.

[…]Toyota isn’t the first automaker to leave Southern California. In late 2005, Nissan announced it was moving its North American headquarters from Gardena to Franklin, Tenn., just outside of Nashville. About 550 employees left for Tennessee; an additional 750 left jobs at Nissan to stay in Southern California.

“The costs of doing business in Southern California are much higher than the costs of doing business in Tennessee,” Nissan Chief Executive Carlos Ghosn said at the time. He cited cheaper real estate and lower business taxes as key reasons for the move.

I know a lot of people like to write books about how bad companies like Wal-Mart and Exxon Mobil are. Young people have been trained to believe that we should raise corporate taxes, raise the minimum wage and burden businesses with other costs, like health coverage for condoms. That’s what young people learn in school from government employees. But in the real world, companies respond to incentives.

4 thoughts on “Toyota moves thousands of jobs from socialist California to capitalist Texas”

  1. Speaking of Wal-Mart, whenever I am in there, I see a lot of poor people and immigrants, carefully choosing their $5 shirts, shorts, and packages of socks. They seem to really like Wal-Mart. Why do liberals hate poor people and immigrants so much that they won’t change their misguided policies?


  2. And yes it is true that companies DO respond to incentives…i.e. CRONY-capitalism. Liberty is the unregulated gift from God. It’s man who adds all these regulations, taxes, and restrictions…

    Understand, the fascist crony-capitalist as the same as the New Testament Judiasers, preaching this God Plus ____ = Salvation. The object is to secularize your relationship with God as your provider, by introducing their own “help”….incentives.

    The fascist crony-capitalist “sells” this to the public as “investment”. Well, I’ve yet to receive my dividend check for this “investment” of the “people’s money” into paying for these incentives. In fact, it is the crony-capitalist himself – both the legislator/lobbyiest and the businessman receiver – who get the dividend check. [Learn the definition of Oligarch. ] The general public gets told they are just lucky to drive on FREE highways and have public libraries ( uuuuhhhh we paid for those too!! what’s this FREE???)

    And then they show us all these charts and graphs of the $$$ economy growing… Do NOT buy this snake oil – Read Hayek’s Road to Serfdom and learn the Broken Window Fallacy of spurring economic growth. All those charts and graphs are meant to make you forget YOUR OWN PLANS for that cash they taxed out of your wallet to use as “incentives”.

    Texas is going crony-capitalist quicker than those Russlian Black Market Oligarchs assumed the “leadership/power position” vacated as the Soviet Union crumbled. What these Texas oligarch’s of crony-capitalism are “settling” is the territory between YOU and God. Whether God is dead, non existent, or just not up for the job…the fascist oligarchs of crony-capitalism want you to know they are here to “hep you”…Just like in the scene from Gone With The Wind when the now freed slaves meet the carpet-baggin’ (Republican) politician who is “personally” (?) giving them 40 acres and a mule…”because we’re your friends….and you’re going to vote like your friends…” it’s just slavery to a different Master.

    Liberty can only exist when we have a Christian worldview. Crony-capitalism is a totally secular school of economic thought. Our nation was created to remove ALL the restrictions placed on Man by Man…Total dependence upon God and the rule of law…not this “your own your own” drivel of secularism.

    The Republican Party must understand that our desire for Liberty means we won’t vote for a crony-capitalist fascist to stop a Marxist. Both are political philosophies that not only lead to tyrannical totalitarianism, but are antithetical to our Declaration and Constitution [there is no enumerated power to “promote the economy” and the unconstitutional continuation of abusing the 3 most abused clauses comes because we refuse to accept the objective truth that those “ideas” that “excuse” the abuse were totally NUKED in the Federalist Papers. To continue to accept the incorrect interpretation is sophomoric!].

    Always Liberty!
    Nancy Coppock


  3. I suspect the only ones left in CA will be wealthy hedge fund managers and big corporations that benefit from government cronyism. Eventually it will look like parts of Mexico: small pockets of extreme wealth, a vanishingly small “middle class” and a huge uneducated, illiterate, malleable underclass. Which will be be precisely what the ones at the top hope for.


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