On the Dash:
- Toyota is increasing U.S. production capacity as tariffs continue reshaping global vehicle sourcing and pricing.
- Expanded domestic truck production could improve inventory stability and reduce exposure to import-related costs.
- Toyota’s long-term investment signals continued confidence in U.S. truck demand and North American manufacturing.
Toyota is seeking approval to build a new $2 billion manufacturing facility in Texas, expanding its U.S. production footprint as automakers respond to tariffs, shifting trade policy, and growing pressure to localize manufacturing.
The world’s largest automaker has submitted plans to the Texas Comptroller of Public Accounts to build a new manufacturing facility in Bexar County, Texas.
This ambitious project includes a proposed $2 billion investment and is expected to create 2,000 jobs.
The new facility will add an assembly line next to Toyota’s existing truck plant in San Antonio. Analysts believe this expansion could enable Toyota to shift Tacoma pickup production from Mexico to the United States if tariffs remain high in the long term. Toyota continuously evaluates its manufacturing footprint to stay competitive and meet customer demand, reaffirming its strategy of “build where we sell and buy where we build.”
Construction is set to begin this year, with completion expected in 2029 and operations starting in 2030. During a recent earnings call, Toyota CEO Kenta Kon expressed interest in expanding production capacity through new factories.
Internally labeled “Project Orca,” the proposed site will deepen Toyota’s manufacturing presence in its largest global market. Currently, the San Antonio facility produces the Tundra and Sequoia, manufacturing nearly 200,000 vehicles in 2025 and employing about 3,700 workers.
In response to tariffs on imported Japanese vehicles and parts, Toyota announced plans in November to invest up to $10 billion in U.S. projects. Additionally, the company committed $912 million to expand production of hybrid vehicles and components across five states, creating over 250 new jobs.
