Torrance and Toyota No Longer Doing Business

By now most Torrance residents have probably heard the bad news. Toyota is packing up and moving to Texas, taking upwards of 5,000 jobs with them. There is no official word yet on how many workers will be asked to relocate or possibly be laid off although some reports have said 3,000 jobs are moving to the company’s planned new headquarters in Suburban Dallas. The complete departure will not happen overnight and will take several years to fully execute. Although it’s a blow to Southern California, the move makes perfect sense for the international auto-maker.

When Toyota first set up shop in the U.S. in the early 1950s, California was the perfect location. Being a coastal city on the Pacific Ocean, Torrance and So-Cal were the closest ports to Japan. Shipping cars and parts the shortest distance for U.S. distribution was a logical business choice. Today, however, Toyota has manufacturing plants in Mississippi, Kentucky and Texas. There is no longer the same need for major importing and being headquartered close to manufacturing is basically a no-brainer. In addition, Texas offers things California doesn’t - tax breaks, less regulation and a cheaper, easier place to do business.

According to Torrance Mayor, Frank Scotto, both New York state and Texas have actively pursued major California corporations through significant financial incentives for relocation.

"When any major corporation is courted by another state, it's very difficult to combat that," Scotto said after Monday's surprise announcement of the move. "We don't have the tools we need to keep major corporations here.” Workers' compensation and liability insurance are just some of the expenses businesses must bear that are higher in California.

"A company can easily see where it would benefit by relocating someplace else," Scotto said.

So, where does this leave Torrance in the future? The upcoming June election now carries more weight than ever, with the need to place forward thinking pro-business (large and small) candidates in office. City Council candidate Aurelio Mattucci is one candidate who has his eye on this issue with plans to keep businesses in Torrance and to foster new opportunities for economic growth.

“We need to fill up our commercial vacancies by offering new businesses true incentives and help out our many existing and loyal small businesses succeed and not just survive. We need to be a truly business friendly city and not just say we are. We also need to streamline permits and plan check process to encourage new growth,” says Mattucci.

With the largest employer in the city pulling up roots, having city leadership that is focused on planting them is more important than ever. Learn more about City Council candidate Aurelio Mattucci at www.VoteforMattucci.com.