More than 50 years after Toyota established its first U.S. operations in California, the Japanese auto company has announced that it will be consolidating certain business and industrial functions at a new headquarters in Plano, Texas, a suburb near Dallas. The Associated Press reported that some employees will begin working out of a temporary office in the area within the next few months, with the company breaking ground on a new campus in Plano by the end of the year.
The facility will house about 4,000 employees, including members of the sales, marketing, engineering, manufacturing and finance divisions, who are currently spread across multiple states. However, Toyota will still have about 2,300 employees in California and 8,200 in Kentucky, where it manufactures the Avalon and Camry sedans. The company also has manufacturing operations in Indiana and Mississippi.
Toyota North America CEO Jim Lentz told reporters that the new headquarters will facilitate more efficient collaboration and decision making within the company. The development could also bring more demand for CNC machining services in the Dallas area.
Toyota already had a foot in the door in Texas, with a truck assembly plant in San Antonio. However, it will take time to construct the new headquarters and set up working offices and manufacturing facilities. Citing "people familiar with the company's plans," Reuters reported that the move will take place in stages and will not be complete until at least the end of 2016.
Last year, the company sold about 2.2 million cars and trucks in the United States. As it ramps up production at the new manufacturing facility in Plano, Toyota may need to reach out to a reliable CNC machine shop in the Dallas area for replacement parts in the event of an equipment breakdown.