Mitsubishi Motors to Relocate North America Headquarters From Cypress to Tennessee (Irvine: income, property tax)

[ysr_racer]

I wonder why?

https://ktla.com/2019/06/25/mitsubis...-to-tennessee/

Mitsubishi Motors announced on Tuesday that it is relocating its North America headquarters to Tennessee, becoming the latest Japanese automaker to leave the state and head to a Southern state looking for lower operating costs.

Mitsubishi, which employs 200 people in Cypress, told the Orange County Register in a statement that the Nashville area offers strong technology skills and “cost savings through the business-friendly work environment.”...

[Vic Romano]

I'm surprised they lasted this long.

There was a pretty strong Japanese community in the area when they moved there. Although not completely gone, the community has dispersed, so from that perspective there is not much to keep them there.

Plus Mitsubishi's presence in the American market is much smaller compared to 30 years ago.

It's not like Orange County will suffer because of this...

[davidt1]

One company here; one company there; it adds up if enough leave.

[DabOnEm]

Originally Posted by Vic Romano

I'm surprised they lasted this long.

There was a pretty strong Japanese community in the area when they moved there. Although not completely gone, the community has dispersed, so from that perspective there is not much to keep them there.

Plus Mitsubishi's presence in the American market is much smaller compared to 30 years ago.

It's not like Orange County will suffer because of this...

The Japanese community doesn't have much to do with it. Like Toyota, the main problem is California's taxes and high cost of living. Add that Nissan USA is already in the Nashville area and this move made sense financially for Mitsubishi.

Whose left? Hyundai and Honda? Wouldn't be too surprised to see them jump in a few years too, especially Honda.

[Vic Romano]

Originally Posted by DabOnEm

The Japanese community doesn't have much to do with it. Like Toyota, the main problem is California's taxes and high cost of living. Add that Nissan USA is already in the Nashville area and this move made sense financially for Mitsubishi.

Whose left? Hyundai and Honda? Wouldn't be too surprised to see them jump in a few years too, especially Honda.

Not now. But that was one of the reasons they located in Cypress originally...they are what would be considered an "old" building now. They would make quite a bit of money selling the property.

Yamaha was a short walk down the street. But they left decades ago.

Kia and Hyundai built new headquarters in Irvine and Fountain Valley respectively. I'd think they are less likely to leave due to the investment, but we'll see.

[FireStation46]

Lots of car companies moved to AL, TN, SC

Compelling economics made it happen

[DabOnEm]

Originally Posted by Vic Romano

Not now. But that was one of the reasons they located in Cypress originally...they are what would be considered an "old" building now. They would make quite a bit of money selling the property.

Yamaha was a short walk down the street. But they left decades ago.

Kia and Hyundai built new headquarters in Irvine and Fountain Valley respectively. I'd think they are less likely to leave due to the investment, but we'll see.

Yeah that's why I think Honda would be the most likely. Hyundai and Kia have some pretty new (and nice) buildings in OC so they'll be in SoCal for the next 10-15 years. Honda's current buildings in Torrance are no better than Toyota's old 80s style office park crap. When it's time for new space they will just find a new city outside CA. It's kind of crazy that at one time LA had the HQ of all of these car companies.

[HB2HSV]

Originally Posted by DabOnEm

The Japanese community doesn't have much to do with it. Like Toyota, the main problem is California's taxes and high cost of living. Add that Nissan USA is already in the Nashville area and this move made sense financially for Mitsubishi.

Whose left? Hyundai and Honda? Wouldn't be too surprised to see them jump in a few years too, especially Honda.

Tennessee gave Mitsubishi an $18M tax break for moving there.

What's not to like as an employee? No state income tax, affordable housing, property tax at 0.5%.

[RMESMH]

Originally Posted by HB2HSV

Tennessee gave Mitsubishi an $18M tax break for moving there.

What's not to like as an employee? No state income tax, affordable housing, property tax at 0.5%.

No state income tax on wages, but they do have a state income tax on dividends and on interest income.

Seven states have no state income tax at all (NV, AK, WA, SD, TX, FL, and WY), and two have no state income tax on wages, but have a state income tax on both dividend and interest income (TN, and NH).

However, by January 1st 2021, the Hall Tax in TN will have been completely repealed, and TN will then join the current seven as a full no state income tax state.

[FireStation46]

Originally Posted by HB2HSV

Tennessee gave Mitsubishi an $18M tax break for moving there.

What's not to like as an employee? No state income tax, affordable housing, property tax at 0.5%.

I think the hourly wage for the factory workers will be very good relative to other hourly wage jobs in the area.

All good stuff as businesses leave the north and left coast for southern climates