Toyota’s Texas plant in San Antonio will receive a $3.6 billion investment as the automaker shifts Tacoma pickup truck production from one of its Mexican facilities to Texas. The expansion will increase manufacturing capacity, create an estimated 2,000 U.S. jobs, and strengthen Toyota’s production network in North America.
Key Takeaways
- Toyota will invest $3.6 billion to expand its San Antonio manufacturing campus.
- Tacoma pickup truck production will move from Toyota’s Tijuana, Mexico, plant to Texas over the next four years.
- The expansion is expected to create approximately 2,000 U.S. jobs.
- A second vehicle assembly line will increase annual production capacity to about 350,000 vehicles.
- Toyota will continue producing Tacoma pickups at its Guanajuato, Mexico, facility.
Toyota Motor announced a $3.6 billion investment to expand its manufacturing campus in San Antonio, Texas, where it plans to move Tacoma pickup truck production from its Tijuana, Mexico, plant over the next four years. The project will add manufacturing capacity, create approximately 2,000 U.S. jobs, and expand one of the company’s largest production facilities in North America.
The investment includes construction of a second vehicle assembly line and a significant expansion of the existing campus. Toyota said the project will nearly double the size of the current 2.7-million-square-foot facility by 2030 while increasing annual production capacity from roughly 200,000 vehicles to 350,000.
The announcement forms part of Toyota’s previously disclosed plan to invest up to $10 billion more than earlier projected in U.S. operations through 2030. The company said the latest project supports its long-term manufacturing strategy across North America.
What Did Toyota Announce?
Toyota confirmed it will relocate Tacoma production from its Tijuana manufacturing plant in Mexico to its San Antonio facility in Texas. The production transfer will take place over the next four years.
The company also clarified that it will maintain manufacturing operations in Mexico. Tacoma production will continue at Toyota’s plant in Guanajuato, meaning not all Tacoma production will move to Texas.
Toyota said the San Antonio expansion will allow the facility to produce more vehicles while supporting future manufacturing needs. The latest investment follows other company initiatives, including its biggest pay rise in decades announced earlier this year.
Investment and Facility Expansion
The project will add a second assembly line to the San Antonio campus, substantially increasing production capability.
Toyota also expects the expansion to nearly double the physical size of the facility by 2030. Once complete, annual production capacity is expected to reach approximately 350,000 vehicles, compared with the current capacity of about 200,000.
The San Antonio campus currently manufactures the Toyota Tundra full-size pickup truck, including its hybrid variant, as well as the Toyota Sequoia hybrid SUV.
Why Is the Toyota Texas Plant Expansion Important?
The investment represents one of Toyota’s largest recent manufacturing commitments in the United States.
According to the company, approximately 2,000 new U.S. jobs are expected to be created as part of the expansion. The additional assembly line and increased production capacity will support higher vehicle output while expanding manufacturing operations in Texas.
Toyota Motor North America President and CEO Ted Ogawa said the expansion reflects the company’s confidence in the North American workforce and its long-term manufacturing strategy.
The company stated that expanding the San Antonio facility strengthens its North American production network while helping meet customer demand for its vehicles.
What Will Change at the San Antonio Plant?
The San Antonio manufacturing campus will undergo a significant expansion over several years.
Production Timeline
Toyota said Tacoma production will transition from Tijuana to Texas over the next four years.
The company did not announce a specific completion date for each phase of the production transfer but stated the overall expansion is expected to be completed by 2030.
Toyota also recently announced a separate $531 million investment in a rear axle manufacturing plant located on the same campus. That facility is scheduled to begin production later this year and will support vehicle manufacturing operations at the site.
Impact on the Texas Workforce
The project is expected to create around 2,000 U.S. jobs, according to Toyota.
The company employs approximately 48,000 people across the United States and said it has invested $8.3 billion in the San Antonio manufacturing campus since construction began in 2003.
The expansion is expected to increase employment opportunities while supporting long-term vehicle production at the Texas facility. It also comes as Toyota continues advancing multiple vehicle initiatives, including efforts related to the conversion of gas cars to EVs.
How Does the Toyota Texas Plant Expansion Affect Manufacturing?
The additional investment increases Toyota’s manufacturing footprint in Texas while expanding the company’s North American production capacity.
The San Antonio campus will continue producing the Toyota Tundra and Toyota Sequoia while adding Tacoma production from the Tijuana facility.
Toyota said maintaining production in Guanajuato alongside the Texas expansion allows the company to continue operating a broader regional manufacturing network rather than concentrating Tacoma production at a single location.
The increased production capacity is intended to support future vehicle demand while improving manufacturing flexibility across Toyota’s North American operations.
Frequently Asked Questions
Why is Toyota moving Tacoma production to Texas?
Toyota announced it will transfer Tacoma production from its Tijuana, Mexico, plant to its San Antonio manufacturing campus as part of a $3.6 billion expansion while continuing Tacoma production in Guanajuato.
How much is Toyota investing in its Texas plant?
Toyota is investing $3.6 billion to expand its San Antonio manufacturing facility.
Where is Toyota’s San Antonio manufacturing facility located?
Toyota’s manufacturing campus is located in San Antonio, Texas, where it currently builds the Toyota Tundra and Toyota Sequoia.
Will the Toyota expansion create new jobs in Texas?
Yes. Toyota said the project is expected to create approximately 2,000 U.S. jobs.
When will Tacoma production begin at the expanded Texas plant?
Toyota said Tacoma production will move from Tijuana to San Antonio over the next four years as the facility expansion progresses.
