Toyota to invest US$3.6bn in Texas as Tacoma output shifts from Mexico
The carmaker says the San Antonio project will add a new assembly line and about 2,000 jobs while keeping both Mexican plants in operation.
- Toyota will invest US$3.6 billion to expand its vehicle assembly plant in San Antonio, Texas, adding a new assembly line.
- The investment facilitates the relocation of Tacoma pickup truck production from its plant in Baja California, Mexico, to the Texas site.
- This expansion and production shift is expected to create approximately 2,000 new jobs in San Antonio.
- The decision aligns with Toyota's strategy to manufacture vehicles where they are sold and is influenced by the changing trade environment.
Toyota Motor Corp. is set to spend US$3.6 billion expanding its San Antonio plant in Texas, where a new vehicle assembly line will be added, Toyota Motor North America Inc. said on Monday (6 July).
The Japanese carmaker plans to move production of the Tacoma pickup truck, a popular model in the United States, from Baja California in northern Mexico to San Antonio.
The shift is expected to create around 2,000 jobs at the Texas site.
A Toyota official said the move was in line with the company’s policy of manufacturing vehicles where they are sold, as almost all Tacoma vehicles are sold in the United States.
The official added that changes in the trade environment were another reason behind the decision.
The investment forms part of Toyota’s plan, announced in 2025, to spend up to an additional US$10 billion in the United States.
The Baja California plant will not be closed, and Toyota will consider how to use the site, while its Guanajuato plant in central Mexico will continue producing the Tacoma.
The announcement comes as President Donald Trump’s administration urges manufacturers, including carmakers, to expand production in the country.
At the same time, uncertainty over trade conditions in North and Central America has grown after the Office of the US Trade Representative opposed extending the United States-Mexico-Canada Agreement to 2042 at the first joint review meeting of the free trade pact on Wednesday.
