Toyota moving sales operations to Texas

Toyota is moving substantial parts of its U.S. headquarters in Torrance, Calif., to suburban Dallas as the world's largest automaker seeks savings from its U.S. sales unit, said people familiar with the matter.

Employees will be informed of the plan Tuesday, said the people, who asked not to be identified disclosing private conversations. Steve Curtis, a Toyota spokesman, did not immediately return a call seeking comment.

The surprise move is a blow to the Golden State, the biggest U.S. auto market and proponent of the strictest clean-air rules. Toyota's Prius hybrid has been California's top-selling model for the past two years and helped secure a leading 22 percent market share.

'It would be very consequential for Southern California,” said Jack Nerad, executive market analyst for vehicle-price data service Kelley Blue Book in Irvine, Calif. 'There might be some brain drain and tumult for employees, though it should be largely seamless to the consumer.”

Toyota has more than 5,300 California employees, most at its Torrance campus in sales, finance, marketing, engineering and product planning. Toyota Motor Sales USA and Toyota Financial Services, based in Torrance, have more than 9,400 U.S. employees.

Toyota Financial Services operates a customer service center in northeast Cedar Rapids. Details on which functions will move and when may be announced as soon as Tuesday.

Toyota City, Japan-based Toyota may base its new regional sales headquarters in or near Plano, Texas, said three of the people who asked not to be named as the plan isn't yet public. The majority of Toyota's Torrance operations may move to Texas over a two-year period, they said.