Nissan Headquarters Relocating to Tennessee

Nissan announced today that it is moving its North American headquarters from Gardena, California, to Franklin.

The Japanese automaker will build a 17-million dollar facility near the Cool Springs area, which will be completed in 2008. Until then, employees will work in the BellSouth building in downtown Nashville.

Nissan’s President and C-E-O Carlos Ghosn cited the cost of doing business in California as one of the major reasons for leaving the west Coast.

“Tennessee has significantly lower real estate costs and lower business tax rates. We believe relocation will offer long term benefits in overall investment and operational costs coupled with the favorable business, legal and taxation climate that exist in this state.”

Ghosn says he expects more than half of the 13-hundred employees in California to move with the relocation. Other hires will come from the Middle Tennessee area.

Governor Phil Bredesen says the high profile move may create a ripple effect for the state.

“It’s almost similar in ways that the Titans were coming here, that it gets people looking around, and they say “Gosh, something’s going on in Tennessee, something’s going on in Nashville, and if a football team owner thinks it’s important and adequate, maybe we ought to look at it.” I think a Nissan like this – it’s a bombshell in that regard, and I think a lot of people are going to look and say, “Wow, let’s take a look at Tennessee. What did they see there that made them want to do this?”

He says talks with the company have been going on for about a year, they received a standard incentive package to move here.