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Toyota Invests $3.6 Billion to Move Tacoma Production to Texas

Toyota Motor announced a $3.6 billion investment to shift Tacoma pickup truck manufacturing from Mexico to its San Antonio facility, creating 2,000 U.S. jobs.

Quincy Quill

July 7, 20262 min read

Automotive production relocation - illustration, Jake Team LLC
Automotive production relocation - illustration, Jake Team LLC

Toyota Motor announced Monday that it will invest $3.6 billion to relocate production of the Tacoma midsize pickup truck from a Mexican facility to its manufacturing campus in San Antonio, Texas. The automaker stated the move is expected to create 2,000 jobs in the United States and add a second vehicle assembly line to the site.

The company plans to roughly double the size of the 2.7-million-square-foot San Antonio plant by 2030. This expansion will increase the facility's annual production capacity from approximately 200,000 units to 350,000 units. The announcement aligns with Toyota's broader goal to invest up to $10 billion more than previously planned domestically through 2030.

A Toyota spokeswoman confirmed that the company is maintaining its operations in Mexico. Tacoma production will transfer from the Tijuana plant to Texas over the next four years, while the automaker will continue to produce Tacoma pickups at another Mexican facility in Guanajuato. The spokeswoman declined to provide additional details regarding the transfer.

This decision marks a reversal from 2020, when Toyota confirmed it would shift Tacoma production from Texas to the Guanajuato plant. The San Antonio facility currently manufactures the Toyota Tundra full-size pickup truck, including a hybrid variant, and the Toyota Sequoia SUV hybrid. Toyota previously announced a $531 million investment in a rear axle plant on the campus, which is scheduled to begin production in the fall.

Toyota Motor North America CEO Ted Ogawa stated in a release that the investment demonstrates confidence in the region's workforce and long-term growth potential. He added that expanding the San Antonio plant deepens the company's commitment to American manufacturing and creating sustainable jobs.

Toyota, which employs 48,000 people in the United States, has invested $8.3 billion in the San Antonio plant since its groundbreaking in 2003. The increased capacity could help the automaker, the world's largest carmaker, become the number one seller in the U.S. market.

According to Cox Automotive, Toyota is forecast to narrow the sales gap with General Motors this year. Toyota's sales rose 0.5% through the first half of the year to 1.24 million vehicles, while GM reported a 6.8% decline to 1.34 million. Toyota has focused on hybrid vehicles, whereas GM has heavily invested in all-electric vehicles.

The announcement comes less than a week after the Trump administration confirmed it would not extend its trilateral trade pact with Canada and Mexico, opting instead for annual reviews. Potential plans to expand the San Antonio plant, codenamed Project Orca, were first reported in May by Automotive News.

Toyota Motor North America employs about 4,938 people in Plano, according to local government records.

Source: cnbc.com.

Sources

https://www.cnbc.com/2026/07/06/toyota-tacoma-truck-san-antonio-plant.html

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Quincy Quill

Quincy Quill reports on local business, new openings, and economic development in Plano.

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