Toyota to invest $3.6B in plant expansion, will shift Tacoma production from Mexico to Texas

Toyota is investing $3.6 billion to expand its San Antonio, Texas, assembly plant, a move expected to create about 2,000 new jobs and bring Toyota Tacoma pickup production from Mexico to the Lone Star State.

The automaker announced Monday that it will build a second vehicle assembly line at its San Antonio campus, allowing the facility to assemble the Tacoma alongside the Tundra and Sequoia. 

As part of the expansion, Tacoma production will gradually transition from Toyota's Baja California plant in Mexico over the next four years, according to the company. Toyota will continue producing Tacoma pickups at its Guanajuato, Mexico, plant.

BMW NORTH AMERICA CEO TOUTS ‘LONG GAME’ IN US

The project will add about 2.5 million square feet to the manufacturing campus, effectively doubling the site's size by 2030 and bringing Toyota's total investment in the San Antonio operation to $8.3 billion since construction began in 2003. Toyota previously moved Tacoma production from San Antonio to its Guanajuato plant in 2020.

Toyota said the investment reflects its confidence in North America's workforce, innovation and long-term growth potential. The expanded facility will also incorporate advanced manufacturing technologies designed to increase production flexibility.

The announcement is another major manufacturing win for Texas, which has attracted billions of dollars in industrial investment in recent years as companies cite the state's business-friendly policies, workforce and available land. Gov. Greg Abbott said the expansion, supported by the Texas Enterprise Fund and JETI program, will qualify for a $20 million state grant and other incentives and reinforces Texas' position as a leading destination for advanced manufacturing.

FORD REHIRES EXPERIENCED ENGINEERS AFTER AI MISSES THE MARK

Once completed, Toyota's San Antonio workforce is expected to grow to approximately 6,000 employees, supported by 23 onsite suppliers. The plant produced more than 197,000 vehicles last year and remains the exclusive assembly site for the Tundra and Sequoia. Production at a new rear axle facility is also expected to begin later this year.

Toyota said it remains committed to manufacturing across the United States, Canada and Mexico while encouraging a swift resolution to issues surrounding the U.S.-Mexico-Canada Agreement to help keep North America's auto industry globally competitive.

AVERAGE NEW CAR PAYMENT REACHES ALL-TIME HIGH AS AFFORDABILITY ISSUES PERSIST

The investment comes as President Donald Trump has pushed automakers to expand U.S. manufacturing while imposing tariffs on imported vehicles, auto parts, steel and aluminum as part of his broader trade agenda. 

Trump has argued the tariffs will encourage companies to shift production to the United States, while automakers have warned the levies could increase costs and disrupt North America's integrated supply chain.

CLICK HERE TO GET FOX BUSINESS ON THE GO

Trump weighed in on Toyota's announcement Tuesday in a post on Truth Social, writing: "Toyota is moving from Mexico to the United States (Texas!). A really big deal. Tariffs at work!"