Toyota Motor said on Monday it will invest $3.6 billion to shift production of the Tacoma midsize pickup from Mexico to its San Antonio, Texas, campus. The move will add a second assembly line and increase the plant’s footprint and capacity as part of a broader U.S. domestic-building push. The San Antonio site, which currently builds the Tundra and Sequoia hybrids, is slated to grow to roughly 2.7 million square feet and lift annual output from about 200,000 units to 350,000 by 2030, with roughly 2,000 new U.S. jobs tied to the expansion. Toyota noted the investment is part of its plan to spend up to $10 billion more than previously planned on U.S. activity through 2030.
The Tacoma transition will occur over the next four years, with production moving from a plant in Guanajuato, Mexico, to Texas while Tacoma continues to be built at another Mexican site. A Toyota spokeswoman said the company will maintain operations in Mexico and continue Tacoma production at the Guanajuato plant, but provided few additional details. Toyota emphasized that the expansion “expands Toyota’s manufacturing capacity and complements our broader North American production network.”
Potential plans to expand the San Antonio plant, code-named Project Orca, were first reported by Automotive News in May. Toyota Motor North America CEO Ted Ogawa said the expansion demonstrates confidence in the region’s workforce, innovation and long-term growth potential, and that the investment deepens Toyota’s commitment to American manufacturing and the domestic supply chain.
Toyota has invested heavily in the San Antonio campus since its 2003 groundbreaking, including a prior $531 million in a rear-axle plant tied to the site’s long-term plans. The move occurs as Toyota aims to grow U.S. sales and compete in a market where hybrids gain share and all-electric vehicles face stiff competition from rivals that have prioritized EVs. Through the first half of the year, Toyota’s U.S. sales rose slightly year over year, while General Motors’ sales declined, reflecting differing strategies across the sector.
Toyota employs about 48,000 people in the United States and says it has invested $8.3 billion in the San Antonio facility since 2003, underscoring its commitment to U.S. manufacturing and regional supply chains.
