Toyota move stuns region, wounds economy

15 мая 2015 | Author: | No comments yet »

Story Highlights

Toyota’s out of Erlanger will hurt region’s economy, not just workers


decision Monday to shut its Erlanger headquarters and move of its jobs to Texas will leave a gaping hole in the economy.

The loss of 1,600 jobs is bad enough, but that’s the beginning.

Toyota’s move to Texas, creates a ripple from a diminished tax base and the exit of hundreds of families to the office complex in Northern that the company will in about two years.

For 18 years, has been a major contributor to charities and events, bringing cachet with its Fortune 500 The North American headquarters for engineering and manufacturing operations workers from all over the who may now take their skills and power elsewhere.


News of Toyota’s decision is disheartening coming just after General Electric it will move a national hub and 1,400 jobs to Southwest

We rejoiced a couple weeks said Doug Moormann, president at Development Strategies an economic consulting firm in Those GE jobs are now going to be more or less, what going to lose in Toyota.

a difficult loss. Those are jobs.

With Toyota’s gone, it will be hard for the to find just one company to up for the loss. More likely, development officials will several smaller firms to up the slack.

We’ll survive, Erlanger Mayor Tom Rouse. more concerned about the people who work for Toyota. really tough.

Hideaki owner and chef of Matsuya Restaurant and Market, Florence, transfers from the local facility could reduce his 15 to 20 percent. (Photo: The Enquirer/Patrick

Move hurts image, local officials

Toyota Monday that it’s its North American headquarters in just north of Dallas, and is its national sales office in California, and a smaller corporate in New York.

Locally, Toyota move about 1,000 workers in accounting, finance and systems to Plano, where the new is expected to open by early

About 300 engineers will to Georgetown, where the company continue to run a manufacturing plant 7,000 employees. About 250 workers are expected to move to an technical center in Ann Arbor, All workers will be offered at the new locations.

Operations at Toyota’s Ky. assembly plant will not be

Toyota’s departure is a symbolic for the region, which for years has to attract and keep businesses. and Kentucky use tax subsidies and other to bring in companies like which got tax breaks when it here in 1996. But states Texas have an advantage. mostly to oil and gas revenue, Texas has no income tax and aggressively pursues from the Midwest and California.

officials told the Associated on Monday that the state Toyota $40 million to relocate its to Plano.

Toyota’s decision employees and local governments, who they didn’t hear the company until the announcement was Monday and didn’t have an to make a case to keep the here. I heard not a word, not a from the people we work all the time out there, Rouse

State economic officials they meet regularly Toyota and other companies to about their needs and plans. Not once, they did Toyota suggest it was looking to out of town.

They were confidential and quiet about it, Dan Tobergte, CEO of Northern Kentucky’s Economic Development Corp.

It as a surprise, said Joe Hall, for Kentucky’s Cabinet for Economic We found out (Monday) morning.

may not have talked about it but the move clearly was on the mind of leadership for some time. spokesman Mike Goss the decision came after of studying how to make the North operations more efficient. He Texas is a logical choice for the new which also will thousands of workers from and New York, because of its central and proximity to transportation hubs and ports.

Goss said company wanted to start from in a new location rather than various administrative, procurement and offices into an existing

We know this is tough for our employees and the community, Goss We recognize the impact. But at the same I know this is the right decision.

Toyota WiLL

Patrick O’Reagan has a Toyota employee for more a decade. I’m still it, he said. It’s nice job is secure.

But he said packing up and won’t be easy for workers who put down roots in the region. especially sad because we’ve it our home, O’Reagan said. have grown up here and nothing more than in this area.

Toyota a security guard on the main leading into its Erlanger (Photo: The Enquirer/Patrick Reddy)

must move fast on

Although they were flat-footed by Toyota’s announcement, and local officials vowed to get to immediately on a recovery plan.

The of hundreds of Kentuckians will be Gov. Steve Beshear We pledge to assist those however we possibly can.

Most admitted the task of over won’t be easy for

Rouse said Erlanger’s $17 million budget relies on Toyota, and some cuts to services may be necessary. The city of stands to lose $1.3 in annual gross receipts and taxes. The Boone County District will lose a year in payroll and net profits tax State officials said the of so many jobs would the entire region.

It’s whether the loss of the Delta Air hub over the past several at the Cincinnati/Northern Kentucky Airport was a in Toyota’s decision, but it could efforts to attract other big

The best hope may be the skilled Toyota leaves behind. If jobs can be found quickly those workers might be to stay.

Our human capital has enhanced tremendously by Toyota’s of training, of instilling community and of a commitment to continuous improvement, said. Those that will be quite sought

All the talk about Toyota’s workers is a reminder of what will be lost when the heads to Texas. Toyota tens of millions of dollars in its its labor force and in the community philanthropic work. The region eventually replace all of that, but no one it to happen quickly.

Toyota has set a high standard for citizenship, the Northern Kentucky of Commerce said in a statement

Staff writers Josh and Scott Wartman contributed.


Toyota WiLL
Toyota WiLL
Toyota WiLL

Interesting Articles

Tagged as:

Here you can write a commentary on the recording "Toyota move stuns region, wounds economy".

Sign in, to write a review.

Our partners
Follow us
Contact us
Our contacts

Born in the USSR


About this site

For all questions about advertising, please contact listed on the site.

Toyota cars catalog with specifications, pictures, ratings, reviews and discusssions about cars Toyota.