Stock Markets July 6, 2026 04:59 PM

Toyota to Spend $3.6 Billion Expanding San Antonio Plant; Shares Drop After-Hours

Automaker will add a second assembly line, shift Tacoma output from Mexico and boost local workforce as part of a multi-billion dollar build-out

By Priya Menon
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Toyota Motor Corp. said it will invest $3.6 billion to expand its San Antonio manufacturing campus, adding a second vehicle assembly line, doubling the plant's footprint and creating 2,000 jobs by 2030. The company plans to move Tacoma midsize truck production from its Baja California, Mexico facility to the expanded Texas plant over about four years. Shares fell as much as 2.6% in after-hours trading following the announcement.

Toyota to Spend $3.6 Billion Expanding San Antonio Plant; Shares Drop After-Hours
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Key Points

  • Toyota will invest $3.6 billion to expand its San Antonio campus, adding a second assembly line and increasing the plant footprint by 2.5 million square feet.
  • Tacoma production will move from Toyota Motor Manufacturing Baja California in Mexico to the expanded San Antonio facility over approximately four years, with 2,000 jobs planned by 2030; this affects automotive manufacturing, regional labor markets and supplier networks.
  • The expansion brings total Toyota investment in San Antonio to $8.3 billion since 2003; the plant assembled more than 197,000 vehicles last year and will see its workforce rise to about 6,000 supported by 23 on-site suppliers.

Toyota Motor Corp. (NYSE:TM) revealed plans for a $3.6 billion expansion of its San Antonio manufacturing campus, news that coincided with a drop in its shares of as much as 2.6% in after-hours trading on Monday.

The automaker said the investment will finance a second vehicle assembly line at the Texas facility and is expected to support the creation of 2,000 new jobs by 2030. As part of the project, production of the Tacoma midsize truck will be transferred from Toyota Motor Manufacturing Baja California in Mexico to the enlarged San Antonio plant over an approximately four-year period.

The announced build-out will add 2.5 million square feet to the San Antonio site, effectively doubling its current footprint. Toyota said the expansion will enable the assembly of the Tacoma alongside the plant's existing production of the Tundra and Sequoia, and will accommodate rear axle assembly.

"Toyotas continued investment in North America is a testament to our confidence in the regions workforce, innovation and long-term growth potential," said Ted Ogawa, President and CEO of Toyota Motor North America. "By expanding our San Antonio plant, we are deepening our commitment to American manufacturing, creating meaningful and sustainable jobs, while advancing our mission to deliver high-quality vehicles that meet the changing needs of customers today and into the future."

The new commitment raises Toyotas total investment in the San Antonio campus to $8.3 billion since groundbreaking in 2003. Toyota expects the local workforce at the plant to grow to roughly 6,000 team members, supported by 23 on-site suppliers and their employees. The company reported that the San Antonio facility assembled more than 197,000 vehicles last year and is the exclusive production site for the Tundra and Sequoia.

Toyota's U.S. manufacturing footprint encompasses 11 plants and directly employs approximately 48,000 people in the country. The company also noted that its North Carolina plant began assembling automotive batteries for electrified vehicles in 2025.

The announcement combines a significant capital expenditure, an internal production shift from a Mexican plant to a U.S. facility, and an explicit hiring target tied to a 2030 timeframe. Market reaction featured the after-hours share decline noted above; Toyota did not provide additional details on execution milestones or intermediate timing beyond the approximately four-year production transfer window and the 2030 jobs target.


Contextual note: Information in this report is limited to the details released by Toyota in the company statement. Where the company provided specific figures or dates those have been reported here; other implementation particulars were not disclosed.

Risks

  • Timing and execution risk tied to the transfer of Tacoma production over approximately four years - this could affect automotive production schedules and supply chain planning.
  • Meeting the 2030 jobs target and scaling the local workforce to roughly 6,000 team members depends on labor market conditions and supplier readiness, affecting regional employment and manufacturing capacity.
  • Integration of the new assembly line and rear axle production alongside existing Tundra and Sequoia assembly poses operational complexity for the plant and its 23 on-site suppliers, with implications for production efficiency.

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