Toyota Expands Texas Plant, Bringing Jobs and Production Changes
Toyota has announced a significant investment of $3.6 billion to enhance its assembly plant in San Antonio, Texas. This expansion is set to create around 2,000 jobs and shift production of the Tacoma pickup from Mexico to Texas.
The company revealed on Monday that it will establish a second assembly line at the San Antonio location, enabling it to manufacture the Tacoma alongside the Tundra and Sequoia models.
As part of this initiative, Tacoma production will gradually be phased out from Toyota’s plant in Baja California, Mexico, over the next four years, although some Tacoma pickups will continue to be produced in Toyota’s Guanajuato facility in Mexico.
Long-Term Commitment to U.S. Manufacturing
This investment project will add about 2.5 million square feet to the manufacturing campus, effectively doubling its size by 2030. With this, Toyota’s total investment in San Antonio will reach $8.3 billion since the facility’s construction began in 2003. It’s worth noting that Toyota had previously shifted Tacoma production from San Antonio to the Guanajuato plant back in 2020.
As the company expands, it reflects its trust in the North American workforce, innovation, and the potential for long-term growth. The upgraded plant will also feature advanced manufacturing technologies aimed at enhancing production flexibility.
This announcement is another manufacturing victory for Texas, which has attracted considerable industrial investment due to favorable business conditions, a strong workforce, and available land. Governor Greg Abbott noted that this expansion, backed by the Texas Enterprise Fund and the JETI program, qualifies for $20 million in state grants and other incentives, solidifying Texas’ reputation as a prime location for advanced manufacturing.
Growth of Workforce and Production
Once the expansion is underway, Toyota’s workforce in San Antonio is expected to reach approximately 6,000 employees, supported by 23 on-site suppliers. Last year, this plant produced over 197,000 vehicles and continues to be the dedicated assembly site for the Tundra and Sequoia. Additionally, production at a new rear axle facility at the site is anticipated to begin later this year.
Toyota maintains its commitment to manufacturing in the U.S., Canada, and Mexico, while promoting a quick resolution to challenges related to the U.S.-Mexico-Canada Agreement to sustain the competitiveness of the North American auto sector.
The announcement of this investment coincides with President Trump’s measures to impose tariffs on imported vehicles, auto parts, steel, and aluminum, which are part of a broader trade strategy aimed at encouraging automakers to enhance U.S. manufacturing capabilities.
In response to Toyota’s decision, President Trump recently highlighted on Truth Social that the move signifies a significant shift, stating, “Toyota is moving from Mexico to the United States (Texas)! A really big deal. Tariffs are working!”
