After 47 years of operation in California, Yamaha Motor Corporation U.S.A. announced that it will be relocating its headquarters to Georgia later this year. This move has been warmly welcomed and recognized by the officials of the “Peach State”.
Georgia Governor Brian Kemp stated on the 10th, “After years of good cooperation, we are honored and proud to welcome Yamaha as the new resident of our state – a place known for having the best business environment in America.” The Governor’s office pointed out that Yamaha has already established a solid foundation in the state, currently employing over 2,300 residents of Georgia.
Yamaha cited the main reasons for leaving California as being “to enhance asset utilization efficiency and increase overall profitability in the U.S. market”, while also mentioning factors such as increased operating costs due to tariffs and changes in the market environment.
Yamaha Motor Corporation U.S.A. is a subsidiary of Japan’s Yamaha Motor Co. The company purchased land in Cypress, California in 1978 and officially established its U.S. headquarters in 1979.
Back in 1986, Yamaha established a large plant occupying 1.3 million square feet in Newnan, Georgia. Over the years, the company gradually shifted some of its operations from Cypress to Kennesaw, located about 31 miles from Newnan, in order to “better serve customers”. The marine business moved to the area in 1999, followed by the motorsports business in 2019.
In 2023, Yamaha established a 75,000 square feet Marine Innovation Center in Kennesaw, further strengthening its marine division. This move left the Cypress location reserved solely for corporate management and financial services.
With the remaining operations also moving to Kennesaw, Yamaha is currently seeking to sell its 25-acre land and related assets in Cypress, with plans to complete the overall transition by the end of 2028.
Governor Kemp stated that this relocation once again proves Georgia’s strong appeal to businesses. According to the Department of Economic Development of the state, Georgia offers several incentives for startups and expanding businesses, including tax credits and exemptions. Companies creating new job opportunities in eight designated industries, such as manufacturing, may be eligible for job tax credits; those investing in manufacturing or telecommunication facilities may also enjoy tax credits; while enterprises purchasing production equipment could benefit from state sales tax exemptions.
Furthermore, Georgia’s corporate income tax rate stands at 5.19%, lower than California’s 8.84%. According to the Tax Foundation’s 2026 State Business Tax Climate Index, Georgia ranks 9th in corporate tax competitiveness nationwide, while California is placed at a distant 41st.
Yamaha manufactures products such as All-Terrain Vehicles (ATVs), marine engines, and personal watercraft. It joins a growing list of companies that have moved their operations or headquarters out of California in recent years. Corporations like Chevron, Tesla, Oracle, and HP have also relocated their headquarters to states like Texas or Nevada, citing rising operational costs and market demand changes. While many companies still maintain some operations in California, there are also those that have completely exited the California market.
For instance, the second-largest wine and spirits distributor in the United States, Republic National Distributing Company, announced in 2025 that it would cease operations in California due to challenging market conditions. Some insurance companies, such as Farmers Direct Property and Casualty Insurance Company, American National, and Merastar Insurance, also withdrew from the California market between 2023 and 2024, no longer providing home and auto insurance.
On the other hand, the fast-food chain In-N-Out stated that its CEO Lynsi Snyder will be relocating to Tennessee, while the company’s headquarters will remain in California. Snyder cited high living and operational costs as the primary reasons for the move.
The trend of companies leaving the “Golden State” has attracted continuous attention in recent years. However, a report released in June 2025 by the nonpartisan think tank California Public Policy Research Institute indicated that the percentage of companies exiting California is actually not high compared to those newly established or continuing operations in the state.
The report showed that California has over 47,000 corporate headquarters, with only 789 relocating between 2011 and 2021, accounting for approximately 1.9% of the total.