Filed under: Hirings/Firings/Layoffs , Toyota It’s official, Toyota is relocating its US operations to Plano, TX .  And it won’t be a symbolic ‘all ranch and no cattle’ gesture – the Japanese automaker, whose headquarters have been in California since 1957, has decided to base nearly all of its operations in the Lone Star State, including much of its engineering, finance and sales and marketing teams.  The move, which will see the establishment of a new headquarters campus in the Dallas suburb will not only affect employees at the company’s current Torrance, CA Toyota Motor Sales USA campus, it will also touch the lives of thousands of employees at the company’s other operations, including 1,000 workers at Toyota Motor Engineering & Manufacturing North America in Erlanger, KY and some New York-based staff as well.  The Toyota Technical Center in Ann Arbor, MI is not facing relocation, however, and it actually stands to gain responsibilities as Toyota overhauls its US org chart.  Toyota says that its reorganization will affect about 4,000 employees in total.  According to Automotive News , while Toyota is adopting an “‘everyone is invited’ stance for the relocation,” some attrition is expected from employees who aren’t interested in relocating southward from the Golden State.  For its part, the automaker is reportedly making expenses-paid visits to Plano available to full-time staffers and spouses to help them make the relocation decision, as well as a lump-sum payment if they decide to go through with the move.  The move is expected to realize massive cost savings for Toyota, including in areas of taxation, real estate and employee cost of living.  It is also expected to allow for consolidation in areas like human resources, information technologies, legal and accounting.  Critically, the move will put the company closer to its North American manufacturing base, which has been increasingly concentrated in southern states, including Texas. 

Filed under: Toyota , UAW/Unions , Canada Volkswagen isn’t the only automaker with high-profile unionization efforts afoot at one of its North American factories.  Unifor, Canada’s largest private-sector union, is attempting to organize Toyota’s factories in Ontario, reports Reuters .  A vote was originally set for next week, but Unifor has apparently found more workers eligible to vote, delaying the proceedings.  It hasn’t rescheduled the ballot yet, but claims there are 7,500 employees with the right to vote, with over 3,000 having already signed union cards.  Toyota is pushing against organizing, saying that workers already have a payment and benefits near the top of the industry, and noting that it has never laid off a permanent employee in Canada.  Unifor has reportedly countered by saying that about a quarter of the workforce is operating under a temporary contract, which receives lower benefits.  The automaker has three factories in Ontario – two in Cambridge and one in Woodstock.  To form a union, a majority of eligible employees must vote to join Unifor.  If successful, they would be the first wholly owned Toyota plants in North America to be organized.  Previous attempts to unionize the Japanese automaker’s Canadian factories in 2001 and 2008 failed due to lack of support. 

Filed under: Toyota , Earnings/Financials At the end of December, 2013 Toyota had a cash stockpile of 1.8 trillion yen ($17.5B US).  As of March 31, at the end of its current financial year, company coffers are expected to swallow another 1.9 trillion yen ($18.4B US) in net profit – said to be a record sum for the Japanese automaker.  In a gesture signaling a turnaround from the horrors of the global recession, Bloomberg reports that Toyota will buy back 60 million shares of its stock, as much as 1.89 percent of the company, for something like 360 billion yen ($3.5B US).  It’s the first buyback since 2009 and the largest buyback since 2003, when it spent roughly 390 billion yen ($3.8B US) repurchasing shares.  Company president Akio Toyoda founded the Toyota Mobility Foundation (TMF), a non-profit that will support international groups working on transportation issues in emerging markets.  Half of the stock that Toyota buys, 30 million shares, will be sold to the foundation via the Japanese Trustee Services Bank for one yen per share, the dividend providing the foundation’s initial funding.  The other 30 million shares will be canceled, a company spokesman telling Reuters that the company wants to reward shareholders.  Industry analysts have been asking Toyota to either return money to shareholders or invest in new factories, but Toyota has ruled out the latter.  After getting burned with excess capacity when the financial crisis came, the company is focused on extracting efficiencies from the plants it already has.  Toyota has said it plans to complete the buyback by June of this year. 

Filed under: Government/Legal , Recalls , Safety , Toyota , Earnings/Financials UPDATE: Just like that, Toyota has released an official statement confirming its $1.2-billion dollar settlement with the US Attorney’s Office.  Our story has been updated to reflect this development and the automaker’s official statement has been added below .  Toyota has reached a settlement over the criminal probe into its unintended acceleration problems, and the outcome is more expensive than first expected.  The Japanese automaker has agreed to pay $1.2 billion to close the investigation among other settlement terms.  The criminal inquiry focused on whether the company kept information from regulators and how it handled drivers’ complaints about the problems, according to the sources.  Between 2009 and 2010, Toyota ended up recalling over 10 million vehicles worldwide over sudden acceleration fears.  Fixes include modifying floor mats, gas pedals, and installing brake override software on affected models.  In addition, Toyota made the latter standard on all of its new vehicles.  The first rumblings of a settlement broke last month when “people familiar with the matter” revealed a possible billion-dollar agreement .  That rumor suggested that the deal would also include criminal deferred prosecution arrangement that would force Toyota to accept responsibility but let it avoid federal criminal convictions.