TORRANCE, Calif., April 28, 2014 – Toyota Financial Services (TFS) today announced that the company will relocate its North American headquarters to North Dallas (Plano), Texas. The move—which is not expected to begin until 2017—is designed to better serve customers and position Toyota for sustainable, long-term growth.
TFS plans to relocate its headquarters to Plano in order to join Toyota Motor Sales, U.S.A., Inc. (TMS); Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA); and Toyota Motor North America (TMA) as the Toyota affiliates unify their respective headquarters there to create a single, state-of-the-art Toyota headquarters and pursue the One Toyota vision in North America.
There are approximately 1,000 employees at TFS’ Torrance, Calif. headquarters; all who are in good standing will be offered an industry-leading relocation or retention package. “We hope all of our headquarters-based associates decide to join us on this journey,” said Mike Groff, TFS president and CEO.
The company noted that associates at TFS’ regional offices, sales offices and service centers, including those located in California—as well as Toyota Financial Savings Bank (TSFB) in Henderson, Nev.—will not be relocating.
The headquarters relocation will not change TFS’ corporate or leadership structure—the company will remain a part of the global network of comprehensive financial services offered by Toyota Financial Services Corporation (TFSC), a wholly-owned subsidiary of Toyota Motor Corporation (Japan) and independent from Toyota’s North American affiliates.
In explaining the rationale behind TFS’ relocation, Groff said, “Toyota Financial Services exists to support the sales of Toyota, Lexus and Scion vehicles. We would not have been the number one auto finance company by volume last year had it not been for the partnership with Toyota Motor Sales. So for us, when TMS, TEMA and TMA decided to bring their sales, manufacturing and corporate functions together in a new, shared campus, our ‘Partner of Choice’ strategy dictated that we join them. Both to support them, AND to benefit from co-locating with them.”
Toyota will construct a new, state-of-the-art campus facility in Plano, which is expected to take two or more years to construct after groundbreaking in the fall of 2014. The vast majority of the Torrance-based TFS associates who choose to relocate are not likely to move until some time in 2017 when the new headquarters is expected to be fully operational and the affiliate partners are in place.
“Since we began operations in 1983, Toyota Financial Services has been unwavering in its collective pursuit of Akio Toyoda’s vision of ‘Always Better Cars’ and our vision of ‘Always Better Service.’ The decision to join the other Toyota North American affiliates in a new Texas-based headquarters is rooted in our mission. This relocation underscores our strong partnership with our sales and manufacturing affiliates and our shared commitment to better serve customers and position Toyota for sustainable, long-term growth in North America,” Groff concluded.
TFS noted that it will continue to have a strong presence in California—with a regional office in Anaheim as well as sales offices throughout the state. Across all Toyota affiliates, approximately 2,300 associates will remain in California after the relocation is completed.
Additionally, in recognition of the company’s strong ties to the communities where it operates, Groff affirmed that TFS would continue to invest significantly in local community partners in California long after its headquarters relocation. Concurrently with the relocation announcement, Toyota also announced a $10 million philanthropic commitment over and above existing commitments for local non-profits and community organizations in California and Kentucky over a five-year period beginning in 2017.
Joint letter to California Governor Jerry Brown
Posted: 4/28/2014 5:37:00 PM
Dear Governor Brown,
Toyota’s North American operations today are announcing plans to relocate their headquarters in California, Kentucky and New York in order to establish a single North American headquarters campus in Plano, Texas. While this means that Toyota’s California headquarters are relocating, Toyota’s other California-based business units—with more than 2,300 employees—are not affected by this announcement at this time, nor are the company’s dealers.
Appreciating the common commitment we share to strengthen California communities with good jobs and equal opportunities, Toyota has been privileged to contribute to the strength of California’s economy for nearly six decades. Although Toyota’s Torrance-based headquarters will eventually be relocating, please know that Toyota plans to maintain a strong presence in California for decades to come.
With our east coast and west coast North American business affiliates relocating to a geographically central location within the United States, Toyota will be better equipped to speed decision making, share best practices, and leverage the combined strength of our employees. This, in turn, will allow us to serve customers better and position the company for sustainable, long-term growth. This location also will ensure closer proximity to our manufacturing and engineering centers, resulting in greater operational improvements.
This relocation isn’t happening tomorrow or next month. It is planned to occur over the next two-to-three years in order to responsibly provide our people, our businesses and our communities with the time needed to ensure a smooth transition. We know that a continued strong presence in California is central to Toyota’s ongoing success. First established in 1957, we’ve invested nearly $5.2 billion here to date, and Toyota’s roots will remain deep in this state.
Toyota’s California-located entities—including parts distribution centers in Los Angeles, Ontario and San Ramon; port facilities, a corporate aviation facility, and an assembly plant in Long Beach; a research and design center in Newport Beach; racing development in Costa Mesa; information technology in Mountain View; and, finance company sales offices in Anaheim, Irvine, Sacramento, San Diego and San Francisco—will continue to provide vital services, good jobs and contributions to their communities.
We recognize that this decision affects our people, your constituents. Consistent with our core principle of Respect for People, we are offering industry-leading programs and packages to our people, whether they elect to relocate or not.
Concurrent with this move, and in recognition of the meaningful work our partners do for communities in need, we have pledged a $10 million philanthropic commitment over and above our existing commitments to ensure continued funding for local non-profits and community organizations in California and Kentucky, beginning in 2017.
We are committed to maintaining a strong presence in California. The Golden State will always be in our DNA; our headquarters’ moves in the coming years won’t change that.
On behalf of the thousands of Toyota’s North American associates and team members who have always been proud to claim California home, thank you for your leadership and your service to the great state of California.
We look forward to partnering with your office and our local communities as we pursue the One Toyota vision for Toyota Motor North America.
James E. Lentz
Chief Executive Officer
Toyota North America
President and Chief Operating Officer
Toyota Motor North America, Inc.
Senior Managing Officer
Toyota Motor Corporation
Michael R. Groff
President and Chief Executive Officer
Toyota Financial Services
A message from Mike Groff, president and CEO of Toyota Financial Services
Posted: 4/27/2014 10:29:00 PM
Dear Team TFS,
Today marks the beginning of the next chapter in the extraordinary evolution of our company. In our collective pursuit of Akio Toyoda’s vision of “Always Better Cars” and our vision of “Always Better Service” we are announcing that TFS plans to move its headquarters to North Dallas (Plano), Texas and join TMS, TEMA, and TMA at a single, shared, state-of-the-art headquarters designed to better position Toyota in North America for sustainable, long-term growth.
Our headquarters relocation, planned to take place within the next three-to-four years, does not impact our regional offices, sales offices, service centers, TFSB Henderson operations or the other Americas Region’s companies. It does, however, impact all of us at our Torrance headquarters. For these people, I appreciate that this is life-changing news and represents personal, life-altering decisions. That is why I want to be very clear about why this is the right move to make, explain when we plan to make it, and underscore our commitment to support those of you in headquarters as you consider what this move means for you, your family and your career with Toyota. Of course—and I can’t stress this enough—we hope our headquarters-based associates decide to join us on this journey.
Because it is important to all of us that a decision of this magnitude be the right decision for our business, I want to share why I strongly believe that it is: TFS exists to support the sales of Toyota, Lexus, and Scion vehicles. We are not an independent finance company. We would not have been the number one auto finance company by volume last year had it not been for the partnership with TMS. To achieve our “Partner of Choice” strategy with Toyota Motor Sales and ensure our on-going success, it is crucial that we join the other affiliates at the new headquarters in Plano as they unify North American operations through the closer coordination of the company’s sales and manufacturing functions.
The benefits of relocating our headquarters to support the One Toyota vision are many:
• greater relationship building, so central to our vision and success;
• increased customer-focused collaboration, a critical need identified over the past few years;
• stronger alignment and the ability to capitalize on improvements that flow from the co-location;
• faster, more coordinated responses to market forces;
• exciting cross-divisional career opportunities for our people; and ultimately,
• a more united culture that fosters growth and world-renowned success propelled by our ability to outperform our industry.
The age-old adage, “united we stand, divided we fall,” is true. We will only succeed together.
Rest assured, we are going to take the time necessary to do this the right way for our business and our people. We anticipate the vast majority of our Torrance-based associates likely will move sometime in the next three-to-four years (2017–2018), when our brand new Texas-based headquarters is expected to be fully operational and TMS is in place. This will give us time to stabilize the FAST and CORE receivables projects—both high priorities that must not be disrupted. This long horizon also will allow us to stay focused on other key initiatives, such as our all-important compliance work. Perhaps most importantly, it will give you, our people at headquarters, the time to fully consider the opportunity to move to the Dallas-Fort Worth area and make the decision that’s right for you. I sincerely hope that when the time comes you will decide to join us and continue a rewarding career with our great company.
For our headquarters-based associates, I recognize this is a big decision, and for those affected who call Southern California home, a difficult and emotional one. Consistent with our Respect for People values, we have industry-leading programs and packages in place to support you through the decision-making and relocation or transition processes, and plans to keep you fully informed along the way.
Soon, eligible associates will receive information outlining opportunities to visit the Dallas-Fort Worth area. We hope you will take advantage of the opportunity to explore all it has to offer. However, should you ultimately decide you are unable to join us, there are generous retention packages that recognize and reward the value of your much-needed talents through our years-long transition. Please know that you are vitally important to the success of our journey at every stage.
As we embark on this next chapter, we pledge to support your decision-making process by keeping you informed with early, honest, and fact-based communications. A website dedicated to all things related to our headquarters’ move has been created, and I encourage you to visit it often at TFSNextChapter.org. We will regularly post “Next Chapter” updates on to the site, and we encourage you to ask and get answers to your questions there. As always, your HRCs are standing by to assist you, too. We are in this together, so please let us know what else we can do to be helpful.
Going forward, and to underscore our commitment to California, TFS will continue to invest in our local community partners long after the headquarters relocation. In fact, concurrent with this announcement, Toyota is pledging a $10 million philanthropic commitment over and above existing commitments for local non-profits and community organizations in California and Kentucky over a five-year period beginning in 2017. I hope you feel as good about this as I do.
As you know, the two pillars of Toyota are Continuous Improvement and Respect for People. In the pursuit of Continuous Improvement—our drive to always be better—we have learned the importance of unity throughout our North American operations. With great certainty and careful deliberation, we will embrace the challenges and the incredible opportunities the move to Plano will bring—and the unity it will make possible. Mindful of the enormity of change this represents for so many, we will carry it out with Respect for People as the guidepost for everything we do.
We never forget that we are as well-respected and as successful as we are because of all of you and your enormous talent, drive, and commitment to your company and to your communities. You are our strength. I am deeply appreciative of all you do and, I know, will continue to do. Thank you very much.
President & CEO
Toyota Financial Services