Toyota Motor announced Monday that it is investing $3.6 billion to move production of the Tacoma midsize pickup truck from a plant in Tijuana, Mexico to its San Antonio, Texas manufacturing campus. The investment is expected to create 2,000 U.S. jobs at the facility, add a second vehicle assembly line, and roughly double the size of the 2.7-million-square-foot plant by 2030. The announcement is part of Toyota's stated plans to invest up to $10 billion more than previously expected domestically in the U.S. through 2030. It comes less than a week after the Trump administration confirmed it would not extend its trilateral trade pact with Canada and Mexico, instead opting to conduct annual reviews. The expansion will increase the plant's annual capacity from roughly 200,000 to 350,000 units.
Toyota Expands San Antonio Plant Capacity to 350,000 Units by 2030
The automaker said the investment will roughly double the size of the 2.7-million-square-foot plant by 2030. The expansion will increase the plant's annual capacity from roughly 200,000 to 350,000 units. The facility will add a second vehicle assembly line as part of the expansion. Toyota previously announced it was investing $531 million in a 500-million-square-foot rear axle plant on the campus that is slated to begin production in the fall.
Toyota Maintains Operations at Mexico Guanajuato Plant
A Toyota spokeswoman said the company is "maintaining its operations in Mexico" as Tacoma production transfers from Tijuana to Texas over the next four years. The company plans to continue to produce Tacoma pickups at another Mexican plant in Guanajuato. The spokeswoman declined to share additional details. She said in an email to CNBC, "This investment expands Toyota's manufacturing capacity and complements our broader North American production network."
Toyota Shifted Tacoma Production to Mexico in 2020
The move comes more than six years after Toyota confirmed it would shift Tacoma production from the Texas plant to the Toyota Motor Manufacturing de Guanajuato plant in Mexico. Potential plans to expand the San Antonio plant, codenamed Project Orca, were first reported in May by Automotive News.
San Antonio Plant Currently Produces Tundra and Sequoia Models
The Texas plant currently produces the Toyota Tundra full-size pickup truck, including a hybrid variant, and the Toyota Sequoia SUV hybrid.
Toyota CEO Confirms $8.3 Billion Total Investment in San Antonio Since 2003
Toyota Motor North America CEO Ted Ogawa said in a release, "Toyota's continued investment in North America is a testament to our confidence in the region's workforce, innovation and long-term growth potential. 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." Toyota, which employs 48,000 people in the U.S., says it has invested $8.3 billion in the San Antonio plant since its groundbreaking in 2003.
Toyota U.S. Sales Up 0.5% in First Half Compared to GM's 6.8% Decline
Toyota is forecast to narrow the gap in U.S. sales with America's largest automaker, General Motors, this year as hybrids get more popular and all-electric vehicles sputter, according to Cox Automotive. The Japanese automaker's sales were up 0.5% through the first half of the year compared with 2025, to 1.24 million. GM, meanwhile, reported a 6.8% decline during that time, to 1.34 million vehicles sold. Toyota's gains come as the automaker has rolled out new models, including all-electric vehicles, while continuing to double down on its hybrid vehicles, where it's been a leader for decades. GM, meanwhile, heavily invested in all-electric vehicles instead of hybrids, many times referring to them as a transitional technology. The Detroit automaker's sole hybrid is a Corvette, while it offers a full lineup of EVs for luxury brand Cadillac as well as many models for other brands.
FAQ
What did Toyota announce on Monday regarding Tacoma production?
Toyota Motor announced Monday that it is investing $3.6 billion to move production of the Tacoma midsize pickup truck from a plant in Tijuana, Mexico to its San Antonio, Texas manufacturing campus. The investment is expected to create 2,000 U.S. jobs and expand the plant's annual capacity from roughly 200,000 to 350,000 units by 2030.
Why is Toyota moving Tacoma production from Mexico to Texas?
The announcement is part of Toyota's stated plans to invest up to $10 billion more than previously expected domestically in the U.S. through 2030. It comes less than a week after the Trump administration confirmed it would not extend its trilateral trade pact with Canada and Mexico, instead opting to conduct annual reviews.
How much has Toyota invested in the San Antonio plant since 2003?
Toyota says it has invested $8.3 billion in the San Antonio plant since its groundbreaking in 2003. The company employs 48,000 people in the U.S.
