Toyota Motor announced a substantial investment of $3.6 billion to shift the production of its Tacoma midsize pickup truck from a facility in Mexico to its San Antonio, Texas, campus. This strategic decision is expected to generate 2,000 new jobs and will involve adding a second assembly line, effectively doubling the plant's size by 2030.
The annual production capacity at the San Antonio plant will increase from approximately 200,000 to 350,000 units. This investment is part of Toyota's broader plan to invest up to $10 billion more in U.S. operations through 2030.
The timing of this announcement is notable, occurring shortly after the Trump administration's decision not to extend its trilateral trade agreement with Canada and Mexico, which may influence manufacturing strategies in the region.
Despite the relocation of Tacoma production, a Toyota spokeswoman confirmed that operations in Mexico will continue, with Tacoma pickups still being produced at a plant in Guanajuato. This move marks a reversal from a previous decision made over six years ago to shift Tacoma production to Mexico.
The San Antonio plant currently produces the Toyota Tundra and Sequoia models, and Toyota has already invested $531 million in a new rear axle plant on the same campus. The CEO of Toyota Motor North America, Ted Ogawa, emphasized that this investment underscores the company's confidence in the North American workforce and its commitment to American manufacturing.
As the world's largest automaker, Toyota's increased production capacity could help it close the sales gap with General Motors in the U.S. market, particularly as consumer preferences shift towards hybrid vehicles, an area where Toyota has a strong foothold, while GM focuses more on all-electric models