Stock Markets July 6, 2026 04:35 PM

Toyota to Invest $3.6 Billion in New Texas Assembly, Will Move Some Tacoma Production from Mexico

New San Antonio facility to add 2,000 jobs and house Tacoma output while Toyota maintains other North American operations

By Leila Farooq
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Toyota Motor Corp announced plans to construct a $3.6 billion, 2.5-million-square-foot assembly plant on its San Antonio campus, scheduled to open by 2030. The company will shift production of the mid-size Tacoma pickup from its Baja California, Mexico plant to the new Texas facility while continuing Tacoma output at its Guanajuato, Mexico plant. The project is expected to create 2,000 jobs.

Toyota to Invest $3.6 Billion in New Texas Assembly, Will Move Some Tacoma Production from Mexico
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Key Points

  • Toyota plans a $3.6 billion, 2.5-million-square-foot assembly plant on its San Antonio campus, scheduled to open by 2030, creating 2,000 jobs - impacts automotive manufacturing and regional labor markets.
  • Production of the mid-size Tacoma pickup will move from the Baja California, Mexico plant to the new Texas plant, while Tacoma production will continue at Toyota's Guanajuato, Mexico facility - impacts North American auto supply chains.
  • Toyota already manufactures Tundra trucks and SUVs at its existing San Antonio plant and has a 500,000-square-foot rear axle plant slated to open in the autumn - relevant for parts suppliers and component manufacturing.

Toyota Motor Corp said on Monday it will build a new $3.6 billion manufacturing plant in Texas and transfer some truck production from Mexico to the United States. The automaker said the new facility will be a 2.5-million-square-foot building located on its San Antonio manufacturing campus and is targeted to open by 2030.

The company said the addition will create about 2,000 jobs. When the plant is complete, production of the mid-size Tacoma pickup currently assembled at the Toyota Manufacturing Baja California plant in Mexico will be moved to the new Texas plant. Toyota also said it will continue manufacturing Tacoma trucks at its Guanajuato, Mexico plant.

Toyota already produces Tundra trucks and sport utility vehicles at its existing San Antonio assembly plant located on the same campus where the new plant will be built. The company also noted that a 500,000-square-foot rear axle plant on the campus is expected to open in the autumn.

In a statement, Toyota said it remains committed to operations across Mexico, Canada and the United States and called for an extension of a North American free trade deal that automakers view as critical to integrated auto production. The company pointed to its cross-border manufacturing footprint while announcing the Texas investment.

The move follows an earlier reallocation of Tacoma production. In 2020, Toyota transferred Tacoma assembly from San Antonio to the Guanajuato plant in Mexico, joining the Baja plant that had produced the model since 2004.

Toyota's announcement comes amid pressure from the U.S. administration and changes in trade policy. President Donald Trump has urged automakers to expand production in the United States and has implemented higher tariffs on autos, steel, aluminum and parts. Toyota's statement emphasized its commitment to operations in all three North American countries while urging policymakers to extend the regional trade agreement cited as essential by automakers.


Summary

Toyota will build a 2.5-million-square-foot, $3.6 billion plant on its San Antonio campus to open by 2030, creating 2,000 jobs. Production of the mid-size Tacoma will move from the Baja California plant in Mexico to the new Texas plant, while Tacoma output will continue at Guanajuato in Mexico. Toyota continues to produce Tundra models at its existing San Antonio facility and is opening a 500,000-square-foot rear axle plant this autumn. The company reiterated its commitment to its North American operations and urged extension of a regional trade deal.

Risks

  • Trade policy uncertainty - higher tariffs on autos, steel, aluminum and parts and the potential need for extension of a North American free trade deal create policy risk that could affect integrated auto production and costs - impacts automotive manufacturers, metals suppliers and parts vendors.
  • Operational transition risks - shifting Tacoma assembly from Baja California to a new plant by 2030 requires capital deployment and production ramp-up, which could pose execution risks for the company and its suppliers - impacts manufacturing operations and supply chain continuity.
  • Labor and regional economic risks - while the project pledges 2,000 jobs in Texas, workforce recruitment and timing could affect when production targets are met, influencing regional labor markets and local suppliers.

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