Toyota to Invest $3.6 Billion in Texas Plant, Shifting Tacoma Production from Mexico

Toyota announced a significant $3.6 billion investment to expand its manufacturing plant in San Antonio, Texas. This major project will introduce a second assembly line, enlarge the complex by approximately 2.5 million square feet, and generate 2,000 new jobs. The expansion aims to boost production of the popular Tacoma, Tundra, and Sequoia trucks.

A key aspect of this investment is the gradual relocation of Tacoma production from Toyota's Baja California plant in Mexico to Texas. This transition is expected to occur over roughly four years. Toyota stated that this move is part of a broader strategy to strengthen its North American manufacturing capabilities.

Despite the shift in production, Toyota emphasized its continued commitment to its operations across the United States, Canada, and Mexico. The company also reiterated its support for a swift renewal of the United States-Mexico-Canada Agreement (USMCA), highlighting the trade deal's importance for the regional automotive industry's competitiveness.

Ted Ogawa, President and CEO of Toyota North America, expressed confidence in American manufacturing, noting that the expansion will bolster the supply chain, meet consumer demand, and foster economic opportunities in Texas. Since 2003, Toyota has invested a total of $8.3 billion in the San Antonio complex. The new production line is anticipated to be operational around 2030, at which point the facility will nearly double in size.

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The expansion reflects the company's confidence in U.S. manufacturing and will contribute to strengthening the supply chain, responding to consumer demand, and generating economic opportunities in Texas.