Over the past several days, there have been rumors regarding Toyota moving its US operations from California and Kentucky to Texas. The Japan-based automaker, currently the world's largest, didn't comment on the rumors – until now. Toyota has just announced that within the next three years, it will move its manufacturing, marketing, sales, and corporate operations to a new state-of-the-art headquarters in Plano, Texas. Since 1957, Toyota America HQ has been in Torrance, California.

The exception is its Technical Center in Ann Arbor, Michigan, which will stay put and will soon be expanded. This corporate move will affect about 4,000 Toyota employees, all of whom will be invited to move with the automaker to the Lone Star State. To help these people out, Toyota will supposedly pay for full-time employees' relocation costs. So why is Toyota doing this, and why was Texas the chosen state? Simple: taxes. Texas corporate and income tax laws are especially kind to businesses and real estate is also cheaper. In addition, the cost of living for employees is less.

Toyota North American CEO, Jim Lentz, had this to say: "With our major North American business affiliates and leaders together in one location for the first time, we will be better equipped to speed decision making, share best practices, and leverage the combined strength of our employees." Construction for the new Texas facility will begin later this year and will last for at least two years. Employees will make the move once the facility is completed.