No workers will remain in Torrance per LA Times.
http://touch.latimes.com/#section/-1/article/p2p-80038322/
http://touch.latimes.com/#section/-1/article/p2p-80038322/
Toyota moving to Texas
- Thread starter eyephone
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NEW -> Contingent Buyer Assistance Program
CA needs to be more corporate friendly.
Let's think about this for a second. What are the onerous costs of doing business in California?
1) Rent / Real Estate cost for the company
2) Rent / Real Estate cost for the employees
What do you propose we do to fix the #1 and #2 onerous costs of doing business in California?
I agree that we need worker's comp reform here in CA.
What do you propose we do to lower the cost of our real estate and make it more comparable with Texas?
Get rid of proposition 13?
It's not going to happen but prop 13 discourage people from selling their homes, decrease inventory and increase property value. Get rid of prop 13 will encourage people to get rid of their home due to high property tax and potentially increase housing inventory. Just think Turtle Rock area, if there's no prop 13, many retire home owner will be selling their homes.
Moreover, evidence shows that because homeowners would allegedly keep their homes for longer, young households often rent for longer before buying a house.[31] Because Proposition 13 could be a disincentive to sell, there is less turnover among owners near the older downtown areas, and prices appreciate fastest in these areas.http://en.wikipedia.org/wiki/California_Proposition_13_(1978)
Virtually every article on the move says it's the housing costs that are the number one factor:
As Automotive News put it, ?Despite the deep, creative talent pool in greater Los Angeles, doing business in California has become more expensive for companies and their workers.? Bestplaces.net said that the cost of living for employees is 39 percent higher in Torrance than in Plano, and housing costs are 63 percent lower in Plano.
http://www.forbes.com/sites/dalebus...nse-for-toyota-to-leave-california-for-texas/
I'm all for that. Prop 13 is the worst.
Vinster
New member
According to this WSJ article (http://online.wsj.com/news/article_email/SB10001424052702303939404579529672654374090-lMyQjAxMTA0MDIwODEyNDgyWj), Denver, Charlotte and Atlanta were in the mix. So maybe John's Creek was under consideration.
Some other interesting tidbits from the article:
A challenge for Toyota will be avoiding a brain drain. Nissan retained just 32% of its workforce when it relocated from the Los Angeles area to Franklin, Tenn., outside of Nashville. Many more employees returned to California after a few years, said Larry Dominique, who was the chief of U.S. product planning for Nissan at the time and now is president of Automotive Lease Guide, a unit of TrueCar Inc.
The auto maker also has a small manufacturing operation in Long Beach, Calif. Toyota said its design studio and several other smaller functions would remain in California, keeping its total workforce there at 2,300.
Some other interesting tidbits from the article:
A challenge for Toyota will be avoiding a brain drain. Nissan retained just 32% of its workforce when it relocated from the Los Angeles area to Franklin, Tenn., outside of Nashville. Many more employees returned to California after a few years, said Larry Dominique, who was the chief of U.S. product planning for Nissan at the time and now is president of Automotive Lease Guide, a unit of TrueCar Inc.
The auto maker also has a small manufacturing operation in Long Beach, Calif. Toyota said its design studio and several other smaller functions would remain in California, keeping its total workforce there at 2,300.
irvinehomeowner
Well-known member
Until Panda/Baby Irvine scared them.Vinster said:
J
jmoney74
Guest
thatOSguy said:
CA needs to be more corporate friendly.
morekaos
Well-known member
True, but if the relatively modest dollar figure of $40 million is all the incentive it took to uproot a stable long time business the offset costs of simply staying put must have been enormous. This just illustrates the onerous overhead and costs of doing business in our little corner or heaven. We need to really re-think our anti-business environment.
paperboyNC
New member
morekaos said:
Let's think about this for a second. What are the onerous costs of doing business in California?
1) Rent / Real Estate cost for the company
2) Rent / Real Estate cost for the employees
What do you propose we do to fix the #1 and #2 onerous costs of doing business in California?
morekaos
Well-known member
It's simple math and common sense...Tesla will chose another state also
"Toyota executives didn?t mention cost, but experts said Texas? low-tax climate surely played a role in the decision.
?No income tax, much, much lower workers? compensation fees, lower insurance fees probably, lower housing costs? all of these things add up,? said Peterson of AutoPacific.
The Toyota decision comes as California officials struggle to persuade Tesla Motors Inc. to build its new battery factory in the state. The electric car maker has listed Texas, Arizona, New Mexico and Nevada as the four finalists for the 6,500-employee factory, but has also agreed to discuss the project with California officials. Tesla has decided to open a much smaller parts factory in Lathrop
Read more here:http://www.sacbee.com/2014/04/29/6361571/toyotas-texas-shift-reignites.html#storylink=cpy
In addition lower CARB and regulatory environment add to the pain. I am in no way advocating lack of regulation but this state strangles you with it.
"Toyota executives didn?t mention cost, but experts said Texas? low-tax climate surely played a role in the decision.
?No income tax, much, much lower workers? compensation fees, lower insurance fees probably, lower housing costs? all of these things add up,? said Peterson of AutoPacific.
The Toyota decision comes as California officials struggle to persuade Tesla Motors Inc. to build its new battery factory in the state. The electric car maker has listed Texas, Arizona, New Mexico and Nevada as the four finalists for the 6,500-employee factory, but has also agreed to discuss the project with California officials. Tesla has decided to open a much smaller parts factory in Lathrop
Read more here:http://www.sacbee.com/2014/04/29/6361571/toyotas-texas-shift-reignites.html#storylink=cpy
In addition lower CARB and regulatory environment add to the pain. I am in no way advocating lack of regulation but this state strangles you with it.
paperboyNC
New member
morekaos said:
I agree that we need worker's comp reform here in CA.
What do you propose we do to lower the cost of our real estate and make it more comparable with Texas?
morekaos
Well-known member
Again, Real estate is only a factor in the overall picture. If over time we lower the cost of living here, than real estate may normalize a bit but to anyone who is native knows RE prices here have ALWAYS been out of line with the rest of the country and probably always will be no matter the economic environment. That is the premium cost of doing business here, however it is not the ONLY reason not to.
qwerty
Well-known member
i dont think you can fix the real estate prices, they will fix themselves over time. as employers continue to move out of state, in particular higher paying employers, this will cause real estate prices to drop. one of the reasons irvines real estate prices are high is because of all of the employers in irvine. imagine of half of them left tomorrow, im guessing real estate prices in irvine/OC would suffer a decent amount.
some of the tech employers up north who have set up advantageous tax structures from day 1 (such as google) shield alot of the profits from US taxes so they can continue to operate here even with the other higher costs of doing business in CA. Valeant who is looking to take over Allergan used to be based in costa mesa and are now canada based which gives them an advantage (due to lower cost of business) when competing against US companies.
some of the tech employers up north who have set up advantageous tax structures from day 1 (such as google) shield alot of the profits from US taxes so they can continue to operate here even with the other higher costs of doing business in CA. Valeant who is looking to take over Allergan used to be based in costa mesa and are now canada based which gives them an advantage (due to lower cost of business) when competing against US companies.
paperboyNC said:
Get rid of proposition 13?
It's not going to happen but prop 13 discourage people from selling their homes, decrease inventory and increase property value. Get rid of prop 13 will encourage people to get rid of their home due to high property tax and potentially increase housing inventory. Just think Turtle Rock area, if there's no prop 13, many retire home owner will be selling their homes.
Moreover, evidence shows that because homeowners would allegedly keep their homes for longer, young households often rent for longer before buying a house.[31] Because Proposition 13 could be a disincentive to sell, there is less turnover among owners near the older downtown areas, and prices appreciate fastest in these areas.http://en.wikipedia.org/wiki/California_Proposition_13_(1978)
paperboyNC
New member
eyephone said:
Virtually every article on the move says it's the housing costs that are the number one factor:
As Automotive News put it, ?Despite the deep, creative talent pool in greater Los Angeles, doing business in California has become more expensive for companies and their workers.? Bestplaces.net said that the cost of living for employees is 39 percent higher in Torrance than in Plano, and housing costs are 63 percent lower in Plano.
http://www.forbes.com/sites/dalebus...nse-for-toyota-to-leave-california-for-texas/
paperboyNC
New member
lnc said:
I'm all for that. Prop 13 is the worst.