Toyota Motor announced Monday that it will invest $3.6 billion to shift production of its Tacoma midsize pickup from Tijuana, Mexico, to the company’s manufacturing campus in San Antonio, Texas. The company said the project will create about 2,000 U.S. jobs, add a second assembly line, and nearly double the size of the 2.7 million-square-foot plant by 2030.
Toyota said the expansion will raise annual capacity at the San Antonio site from about 200,000 vehicles to 350,000. The plant currently builds the Tundra full-size pickup, including a hybrid version, and the Sequoia hybrid SUV. Toyota has also announced a separate $531 million investment in a rear-axle facility on the campus, expected to begin production in the fall.
A company spokesperson said Toyota will maintain operations in Mexico as Tacoma production moves to Texas over the next four years. Tacoma pickups will continue to be built at Toyota’s Guanajuato plant, she said. The decision follows Toyota’s 2020 move to shift Tacoma production from Texas to Mexico.
The announcement is part of Toyota’s broader plan to invest up to $10 billion more than previously expected in U.S. operations through 2030. It also comes after the Trump administration said it would not extend the U.S.-Mexico-Canada trade agreement and would instead conduct annual reviews.
Toyota North America CEO Ted Ogawa said the investment reflects confidence in the region’s workforce and long-term growth prospects. Toyota employs about 48,000 people in the United States and says it has invested $8.3 billion in San Antonio since breaking ground there in 2003.
The added capacity could strengthen Toyota’s position in the U.S. market. Cox Automotive expects Toyota to narrow its sales gap with General Motors this year, helped by demand for hybrids and recent model launches. First-half Toyota sales rose slightly while GM sales declined, the companies reported.