Toyota says it will close its Engineering & Manufacturing North America headquarters in Erlanger and move 1,550 jobs. Texas Governor Rick Perry, who is not shy about his intentions of acquiring businesses from other states across the United States, landed Toyota. The move will also result in a loss of 1.3 million in tax revenue.
It's a huge blow to the region.
The move is part of an operation that will consolidate the company's three headquarters for sales, marketing and manufacturing, along with its financial division, in Plano, Tex. The company announced plans earlier to move another HQ from Los Angeles to Plano.
Approximately 1,000 jobs will move from Erlanger to Plano, the company said. 300 production engineering jobs will move to the company's existing facilities in Georgetown.
The remaining 250 direct procurement positions will be transferred to York Township, Mich., the company said.
The move is expected to be completed when the Plano campus is ready in late 2016 or early 2017. About 4,000 jobs in all will be affected.
Gov. Steve Beshear issued a statement that read in part, “Obviously, we are extremely disappointed by Toyota’s decision. We would have welcomed the opportunity to discuss options with Toyota, but we will now turn our attention to preparing for this transition."
Toyota will still have approximately 8,200 employees in Kentucky when the move is complete.
"Kentucky remains a powerful force in auto manufacturing, and we will do everything possible to maintain and strengthen Kentucky's position as one of the top states for the auto industry,” Beshear said.
Beshear and Erlanger Mayor Tom Rouse both admit that they were both blindsided by the move.
Kentucky State Senate Majority Leader, Damon Thayer is blaming the loss on his political counterparts.
“Once again, Kentucky loses a significant number of jobs to two states perceived to have a better business climate than ours – Michigan and Texas. Unfortunately, this won’t be the last time we see this happen. Every day, Kentucky loses opportunities to bring in new companies because of our business climate. It’s time for us to hold Democratic legislators responsible for these lost jobs and make them address the issues driving our corporations away. I remain thankful to Toyota for their investment in Georgetown, and I am deeply sorry that our business climate has forced them to move so many Erlanger jobs out of the Commonwealth.”