This is a real blow to the local economy:
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.
. . . .
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.
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.
This marks the second departure of a major auto company in a decade:
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.
You might think “business writer” Michael Hiltzik would be writing about the departure of a local business headquarters employing thousands of workers. But the clear solutions — lower business taxes, lower workers’ compensation costs, and the like — don’t fit his ultra-left world view. So today, his “business” column focuses on racist comments made by Clippers’ owner Donald Sterling, giving us a glimpse of the “dirty laundry” in this woefully undercovered story.
Sometimes it’s hard to tell what’s the worst thing about California: the ridiculous regulation, or the crappy media. My conclusion: they’re both the worst.