Key facts
- Toyota will invest $3.6 billion to expand its San Antonio, Texas plant.
- The expansion will add 150,000 units of annual production capacity by 2030.
- Approximately 2,000 jobs will be created in Texas by 2030.
- Some Toyota Tacoma production will be relocated from Baja California, Mexico, to Texas.
- The Baja California facility produced 166,653 Tacomas in the previous year.
- Toyota's Apaseo el Grande plant will continue producing Tacomas for the US market.
Toyota Motor is set to significantly alter its North American manufacturing footprint by shifting a portion of its Tacoma pickup truck production from its plant in Baja California, Mexico, to San Antonio, Texas. This strategic move involves a substantial US$3.6 billion investment, aiming to boost annual production capacity by 150,000 units and create approximately 2,000 jobs in Texas by 2030.
The expansion will see the San Antonio facility, which currently produces full-size pickups and SUVs, grow to approximately 5 million square feet. This investment is part of Toyota's broader commitment to US manufacturing, with plans to invest US$10 billion in the country over the next decade. The relocation is designed to mitigate the impact of potential US tariffs on vehicles imported from Mexico, thereby reducing production costs and strengthening the company's supply chain.
While production will gradually move from the Baja California plant over approximately four years, starting in 2030, Toyota has stated that its Apaseo el Grande plant in Guanajuato will continue to produce the Tacoma for export to the United States. The company has assured that this expansion in Texas will not affect operations in Guanajuato, maintaining an integrated North American production network. The Tacoma's status as the best-selling midsize pickup truck in the US underscores the significance of this manufacturing adjustment.
This decision comes amid ongoing uncertainty surrounding the review of the United States-Mexico-Canada Agreement (USMCA), which has created a complex environment for the North American automotive sector. Toyota has expressed its commitment to operations across the US, Canada, and Mexico and called for a swift resolution to the USMCA review to ensure the region's global competitiveness. Texas Governor Greg Abbott welcomed the investment, highlighting the state's competitive advantages.