On the Dash:
- Toyota’s expanded U.S. truck production could improve future Tacoma inventory levels for dealers.
- The investment reinforces Toyota’s long-term commitment to North American manufacturing despite ongoing trade uncertainty.
- Strong demand for pickups and hybrid vehicles continues to drive Toyota’s production and investment strategy.
Toyota Motor North America (TMNA) has announced a $3.6 billion investment to expand its manufacturing campus in San Antonio, which includes adding a second vehicle assembly line for the Toyota Tacoma and creating approximately 2,000 new jobs.
The expansion will gradually shift Tacoma production from the automaker’s Baja California, Mexico, plant to Texas over the next four years, reinforcing the automaker’s U.S. manufacturing footprint. “Toyota’s continued investment in North America is a testament to our confidence in the region’s workforce, innovation and long-term growth potential,” said Ted Ogawa, President and CEO of TMNA, according to the automaker’s release.
Additionally, the project will add 2.5 million square feet to the San Antonio campus, doubling the facility’s size by 2030. Once complete, annual production capacity will increase from roughly 200,000 vehicles to 350,000. Toyota will continue building the Tacoma at its Guanajuato, Mexico, plant while transitioning production from Baja California.
Toyota’s U.S. manufacturing footprint
The latest investment brings Toyota’s total commitment to the San Antonio facility to $8.3 billion since construction began in 2003. After the expansion, the plant will produce the following:
- The Tacoma
- The Tundra
- The Sequoia
These vehicles will give the automaker greater manufacturing flexibility to meet changing customer demand across its truck lineup. The company’s growth plans also include a rear-axle plant opening this fall and a workforce expansion to approximately 6,000 employees, supported by 23 on-site suppliers.
Expansion comes amid trade uncertainty
The announcement comes as automakers navigate continued uncertainty surrounding North American trade policy. The Trump administration recently replaced the U.S.-Mexico-Canada Agreement (USMCA) renewal process with annual reviews, creating new questions for manufacturers with operations across all three countries. Despite the evolving trade landscape, the automaker said it remains committed to maintaining a strong manufacturing presence throughout the U.S., Canada and Mexico while supporting a timely resolution to trade policy discussions.
For nearly 20 years, Toyota Texas has produced trucks and SUVs, assembling over 197,000 vehicles last year as the sole producer of the Tundra and Sequoia.
