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Toyota (TM) Opens its North American Headquarters in Texas

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Toyota Motor Corp Ltd.’s (TM - Free Report) holding company, Toyota Motor North America Inc., has formally launched its new North American headquarters in Plano, TX. The new campus is part of the company’s $10 billion U.S. investment over the next five years and is expected to generate approximately 4,000 jobs in North Texas by this year-end.

The North American headquarters will combine four different divisions, consisting of manufacturing, sales and marketing, corporate operations as well as the North American finance arm. This unification is part of the “One Toyota” initiative of 2013 with a view to create more operations in North America by converging all its functionalities to one location.

Since 2013, Toyota has invested about $1 billion to build its new corporate campus across 100 acres in Plano and move thousands of team members and their families from California, Kentucky and beyond to North Texas.

With construction almost complete, occupancy started in late spring. The shifting is expected to continue in phases through December.

Per Jim Lentz, CEO of Toyota in North America, the new headquarters will motivate its team members for greater alliances, transformation and faster decision making in order to benefit their customers.

Toyota is also celebrating its 60th anniversary in the United States this year. Among the few commitments the company has made towards the U.S. includes a $23.4 billion direct investment, setting up 10 manufacturing assembly facilities around the country as well as employing 136,000 directly or via dealerships.

Price Performance
    
Toyota has outperformed the Zacks categorized Automotive–Foreign industry in the last three months. The automaker’s shares have gained 2.4% during this period, while the industry has witnessed a 1.2% advance.



Zacks Rank and Key Picks

Currently, Toyota carries a Zacks Rank #3 (Hold).
 

Some better-ranked stocks in the auto space include Allison Transmission Holdings Inc. (ALSN - Free Report) , Cummins Inc. (CMI - Free Report) and Continental AG (CTTAY - Free Report) . Allison Transmission flaunts a Zacks Rank #1 (Strong Buy), whereas Cummins and Continental hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 11%.

Cummins has an expected growth rate of around 11.7% in the long term.

Continental has an expected long-term growth rate of 7.8%.

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