Toyota Motor Corporation announced plans on Monday to invest $3.6 billion in a new automotive manufacturing plant in Texas, marking a strategic shift of some production operations from Mexico to the United States. The new facility, spanning 2.5 million square feet, will be constructed on Toyota’s existing manufacturing campus in San Antonio and is scheduled to begin operations by 2030.
The move will see the production of Toyota’s mid-size Tacoma pickup truck partially relocated from the Guanajuato plant in Mexico to the new Texas plant upon its completion. Despite this shift, Toyota confirmed it will continue manufacturing Tacoma trucks at its Guanajuato facility, which currently shares the production of the model with the Baja plant. The Baja plant had produced the Tacoma from 2004 until 2020, when Toyota first transferred some production from San Antonio to Guanajuato.
The company already assembles Tundra trucks and SUVs at the San Antonio site and plans to open a new rear axle plant there this autumn. With the expansion, Toyota aims to create approximately 2,000 new jobs in the region.
This announcement comes amid ongoing pressure from the U.S. government, particularly under President Donald Trump, who has sought to encourage automakers to increase domestic manufacturing. The administration has implemented higher tariffs on imported automobiles, steel, aluminum, and auto parts to incentivize production within the United States.
Despite the production shift, Toyota reiterated its commitment to maintaining a robust manufacturing presence across North America, including operations in Mexico, Canada, and the United States. The automaker also called on the U.S. government to renew the North American trade agreement, highlighting its importance in supporting the integrated nature of automotive production across the continent.
The decision reflects Toyota’s response to both market conditions and policy developments while balancing its global manufacturing strategy and supply chain considerations.