Toyota Invests $3.6 Billion to Boost Tacoma Production in Texas
Toyota Motor Corporation has announced a significant investment of $3.6 billion to relocate the production of its Tacoma midsize pickup truck from Mexico to its manufacturing facility in San Antonio, Texas. This strategic move is expected to create approximately 2,000 new jobs in the United States and enhance the plant’s capacity by adding a second vehicle assembly line.
The expansion will nearly double the size of the existing 2.7-million-square-foot facility by 2030, increasing its annual production capacity from around 200,000 to 350,000 units. This investment is part of Toyota’s broader commitment to invest up to $10 billion in its U.S. operations through 2030, a figure that exceeds previous projections.
The announcement comes shortly after the Trump administration confirmed it would not extend its trilateral trade agreement with Canada and Mexico, opting instead for annual reviews. A Toyota spokesperson emphasized that while Tacoma production will transition from Tijuana to Texas over the next four years, operations in Mexico will continue, with Tacoma pickups still being produced at the company’s Guanajuato plant.
“This investment expands Toyota’s manufacturing capacity and complements our broader North American production network,” the spokesperson stated.
This shift in production marks a significant reversal from Toyota’s decision over six years ago to move Tacoma manufacturing to Mexico. Currently, the San Antonio plant also produces the Toyota Tundra full-size pickup truck, including a hybrid variant, as well as the Toyota Sequoia SUV hybrid. Additionally, Toyota has previously announced a $531 million investment in a new rear axle plant on the same campus, which is set to begin production in the fall.
The plans for expanding the San Antonio plant, internally referred to as Project Orca, were first reported by Automotive News in May. Ted Ogawa, CEO of Toyota Motor North America, expressed confidence in the region’s workforce and the long-term growth potential of American manufacturing. “By expanding our San Antonio plant, we are deepening our commitment to American manufacturing, creating meaningful and sustainable jobs, while advancing our mission to deliver high-quality vehicles that meet the changing needs of customers today and into the future,” he stated.
Toyota employs approximately 48,000 individuals in the United States and has invested $8.3 billion in the San Antonio facility since its inception in 2003. The increased investment and production capacity are expected to bolster Toyota’s position in the U.S. automotive market, potentially allowing the company to close the gap with General Motors, the largest automaker in the U.S. market.
According to Cox Automotive, Toyota is projected to narrow the sales gap with General Motors this year, particularly as hybrid vehicles gain popularity amid a slowdown in all-electric vehicle sales. In the first half of the year, Toyota’s sales increased by 0.5% compared to the previous year, totaling 1.24 million vehicles sold, while General Motors reported a 6.8% decline, with 1.34 million vehicles sold.
Toyota’s success can be attributed to its ongoing rollout of new models, including all-electric vehicles, while maintaining a strong focus on hybrid technology, where the company has long been a leader. In contrast, General Motors has heavily invested in all-electric vehicles, often positioning hybrids as a transitional phase, with their current hybrid offerings limited to the Corvette and a selection of electric vehicles under its luxury Cadillac brand.
This investment marks a pivotal moment for Toyota as it aims to enhance its manufacturing capabilities in North America and adapt to the evolving automotive landscape.
