Toyota To Invest $126 Million for Third Ann Arbor Expansion

Dec 18, 2014 02:56 PM EST | Jordan Ecarma

Toyota has announced a third expansion in its Ann Arbor, Mich., operations that will involve an investment of $126 million.

The Japanese automaker plans to consolidate certain functions in Michigan, relocating around 85 jobs from California by the end of 2016.  

"Both vehicle development and powertrain functions will become centralized in Michigan, increasing their scope, responsibility and decision-making ability while providing improved communication and access to the company's direct procurement division," Toyota said in a statement.

Toyota announced a $28 million plan in late 2013 that would expand its Ann Arbor operations. Earlier this year, the automaker said that 250 direct procurement and supplier engineering development positions currently based in Erlanger, Ky., would be added.

"The Technical Center continues to be a vital part of our growing North American operations that enables Toyota to package greater value for our customers," Ed Mantey, senior vice president at the Toyota Technical Center, said in a statement.

"Centralizing our vehicle development and powertrain functions here in Michigan is beneficial for our decision-making process and allows us to better respond to changes in the marketplace while improving the speed at which we can offer technology advances to customers."

The company has been working to shift from southern California headquarters to a new spot in Plano, Texas, as it attempts to consolidate its scattered operations.

The company announced the move in April and over the summer said that it planned to rewrite all job descriptions as part of a companywide restructuring process. Previously, company culture and standards have been different for each division, making paychecks and promotions inconsistent throughout the company, Automotive News said in a report last month.

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