Wednesday, April 30, 2014

Who Didn't See This Coming?

California drove Toyota out of state: Torrance Mayor
Torrance Mayor Frank Scotto blames the state of California for Toyota Motor's decision to relocate its North American headquarters from the city to Plano, Texas.

"The state of California lost Toyota," Scotto said on "Power Lunch" Tuesday.

He pointed to a number of issues in the Golden State that negatively affect companies' bottom line: tax structure, workers' compensation and liability insurance.
100,000 jobs lost. Who knows how much tax revenue is leaving for Texas along with those jobs? How many distributors and suppliers are either out of work, significantly downsized, or outright gone, now, that the car company is no longer in CA?

What is interesting, of course, is that the mayor of Torrance is saying this. Texas is listed as the second-best state in which to do business. California is 47th, with only WV, RI, and HI worse for businesses. Taxes, wages, and insurance are all too high - and it's a question of why businesses are leaving?

Of course, the left will point to the tax breaks offered to companies that move as some sort of sinister secret plot to lure companies away. Um, dolts? There's nothing secret about that process. State A wants to take a business away from State B, so State A offers better business insurance. That's pretty much how things work on planet earth...

Would be nice if you'd at least visit every once in a while...

That is all.


Bubblehead Les. said...

Gets better. Seems that Toyota is pulling out of a lot of places and consolidating its business. One of them is its NEW YORK CITY Financial Offices.

Awwwww. The Big Apple and it's SOOOO Business Friendly Environment doesn't get to rob this Japanese Multi-National any more.

What a shame.

Armed Texan said...

Subtitle: California Discovers Route 66 Runs Both Ways.

wolfwalker said...

The only problem with this is that undoubtedly some of the Toyota workers who move to Texas will be Democrats, and will vote that way in their new home. More Democrats is the last thing Texas needs.

DaddyBear said...

Kentucky's losing about 1600 jobs over the next few years as Toyota moves them to Texas. I'm hoping that most of them get transferred to the new location instead of being shown the door.

Phelps said...

Plano is more than Republican enough to absorb this many immigrants and still be solidly Republican.

George P. Burdell said...

According to the survey you linked to, the People's Republic of Kalifornia ranks #50 in cost of doing business and #48 in business friendliness.

Can we say "cause and effect"?

B said...

100,000 jobs?

You sure about that number?

Seems high by about 10X

Jay G said...

B, 100K was the amount the mayor quoted in the video at the link.

Morris said...

"Would be nice if you'd at least visit every once in a while..."

Personally, I'd prefer they stay on planet Bizzaro.

Anonymous said...

Blogger Armed Texan said...

Subtitle: California Discovers Route 66 Runs Both Ways.

Or, put another way, Governments everywhere discover that market forces APPLY TO THEM, too!

If your customers don't like the kind of government you provide, they will look for one that does. (And when you are that far down the list, it isn't hard to find one that is better.)

Californians: Welcome to the world you made.

Jim said...

Y'all will surely 'scuse me while I enjoy this moment?


Sunk New Dawn
Galveston, TX

Matt Sorrell said...

As DaddyBear mentioned, we're losing ~1,600 from my neck of the woods here in Kentucky. My across-the-street-neighbor, my next-door neighbor, and one of the deacons at our church are all impacted.

The breakdown, as I understand it, are 1,000 employees moving to Texas, ~300 from parts acquisition moving to Ann Arbor, MI, and the balance moving down to the Georgetown, KY Toyota plant. The only mildly mitigating factor is that the Georgetown plant is going to start building Lexus vehicles and will be hiring for that. Net job loss will only be ~400 once you factor those jobs in, but it's a loss instead of a ~1,200 job gain.

Oh, and what nobody has talked about yet are the follow-on effects here in Kentucky. There is a parts supplier that was located here just because that's where Toyota Manufacturing HQ was. With supply chain moving to Michigan, I would expect Toyota Boshoku to move as well. No sense staying here if the folks you work with are elsewhere.

I wonder if Kentucky can send California a bill to cover the payroll tax losses?