Key facts
- Toyota will invest $3.6 billion to expand its San Antonio, Texas plant.
- The expansion includes adding a Tacoma assembly line and shifting some production from Mexico.
- The project is expected to create 2,000 new jobs and double the facility's size to 5 million square feet by 2030.
- President Donald Trump claimed his tariffs were responsible for the investment.
- Tesla has leased a large industrial building in Austin, expanding its presence in the region.
Toyota announced a $3.6 billion investment to expand its San Antonio, Texas, plant, which will include a new assembly line for the Tacoma pickup truck. This expansion aims to shift some production of the midsize truck from Mexico to Texas over approximately four years, creating 2,000 new jobs and doubling the facility's size to 5 million square feet by 2030. The San Antonio campus also produces the Tundra and Sequoia models and will launch a rear axle plant this fall.
President Donald Trump claimed credit for the investment, stating that tariffs were responsible for Toyota's decision to move production to the United States. However, Toyota did not attribute the expansion to tariffs and will continue to produce some Tacoma models and the Corolla in Mexico. The company's announcement noted trade uncertainty and encouraged a swift resolution to the USMCA trade agreement to maintain North American competitiveness.
Ted Ogawa, president and CEO of Toyota Motor North America, stated the investment reflects confidence in the region's workforce and innovation. The move provides Trump with an example to support his administration's argument that tariffs incentivize reshoring manufacturing.
Separately, Tesla has reportedly leased a 682,000-square-foot industrial building in Austin, expanding its significant presence in the greater Austin industrial market to nearly 3 million square feet. The building, developed by Sansone Group and Principal Asset Management, is expected to be completed in January.