Toyota Shifts Tacoma Production to Texas from Mexico in $3.6 Billion Investment

Toyota announced a significant shift in its North American production strategy, moving the majority of its Tacoma mid-size pickup truck assembly from Mexico to the United States. This transition is a cornerstone of a $3.6 billion investment in its San Antonio, Texas plant. The Japanese automaker plans to establish a second assembly line at the Texas facility, a move expected to generate more than 2,000 jobs and boost annual production capacity by 150,000 units.

The relocation from Toyota's Tijuana, Mexico plant is anticipated to take approximately four years. This strategic decision follows closely on the heels of the U.S. administration's choice not to renew a North American trade pact, a development that has introduced uncertainty for businesses operating across the region. Toyota has previously signaled its commitment to U.S. manufacturing, pledging up to $10 billion in investments over the next five years.

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The investment is aimed at further enhancing Toyota's locally rooted and competitive production system.

While Toyota will continue building some Tacoma trucks at its Guanajuato, Mexico plant, the emphasis is clearly shifting stateside. The San Antonio factory already produces Tundra SUVs and Sequoia pickups. This investment aligns with a broader trend of automakers relocating production to the U.S., partly in response to potential tariffs on imported vehicles, steel, and aluminum, as advocated by the Trump administration.

Toyota expressed its commitment to its operations across the U.S., Canada, and Mexico, calling for a swift resolution to the North American trade agreement negotiations to maintain the region's global competitiveness. The company noted that while the existing pact remains in effect for another decade, annual reviews initiated by Washington could influence investor confidence. The company stated the investment aims to "further enhance Toyota's locally rooted and competitive production system."

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Toyota remains committed to its operations throughout the U.S., Canada, and Mexico, and encourages a quick resolution to USMCA to make the North American region globally competitive.