DAVID M. HERNAND
Founding Partner,
Co-Chairman
Cooley, Los Angeles
It certainly looks like Toyota is moving to Texas because the company seeks a more cost-effective environment to run its operations. California is very expensive for businesses due to higher tax rates, much higher commercial and residential real estate costs, complex regulations and regulatory environment, and labor laws.
MARC FELDMAN
Co-Founder
DPL Asset Management
I think that is just part of it. I would also look at the intense marketing efforts Texas has invested in promoting the state to companies like Toyota to relocate there. In other words: What was the package of goodies that Texas presented to Toyota?
ROGER GILLOTT
President
Gillott Communications
The perceived reason? That depends on the commentator’s political bias. The stated reason? Toyota said it simply wanted to consolidate its corporate offices near its assembly plants. The real reason? Somewhere in between.
WILL WRIGHT
Government and Public Affairs Director
American Institute of Architects, Los Angeles
Keep in mind that Texas is incentivizing Toyota with a $40 million carrot. That’s nearly $10,000 per job relocated. The Southern California region needs to facilitate greater prosperity across the board so that we have deeper pockets and more appealing carrots.
JACK HUANG
Chief Executive
Old Pasadena Restaurant Group
Absolutely. The cost of living and doing business in the state of California continues to be a struggle. Unfortunately, at this point in time, I do not see a light at the end of the tunnel.