Toyota is relocating its sales headquarters from California to Texas to bring its various U.S. operations, which are currently spread across the country, into one space, Reuters reports.
Texas Gov. Rick Perry reportedly courted Toyota by promising lower taxes and easier regulations, according to Bloomberg.
Sales, service, marketing, advertising, manufacturing, and quality operations will relocate to suburban Dallas, according to Reuters. Employees will be informed of the move on Monday, and some will be offered relocation packages and financial assistance.
The relocation is a blow to California, which holds the biggest auto market in the U.S. Toyota has more than 5,300 employees in California, most of whom work at the Torrance headquarters near Los Angeles, Bloomberg reports.
Moving Toyota’s headquarters will take several years, according to the Los Angeles Times.
The LA Times notes that 75 percent of Toyota’s cars that are sold in the U.S. are built in America—mostly at plants in Texas, Mississippi, and Kentucky—so the relocation will place the automaker’s headquarters closer to its production centers.