A Toyota Tacoma truck at the City Toyota dealership on February 28, 2024 in Daly City, California.
Justin Sullivan | Getty Images
toyota motors The company announced Monday that it will invest $3.6 billion to move production of its Tacoma mid-duty pickup truck from a plant in Mexico to a manufacturing site in San Antonio, Texas.
The investment is expected to create 2,000 U.S. jobs at the facility, add a second vehicle assembly line and nearly double the size of the 2.7 million square foot factory by 2030, the automaker said. According to Toyota, this will expand the plant’s annual production capacity from approximately 200,000 vehicles to 350,000 vehicles.
The announcement is part of Toyota’s stated plan to invest up to $10 billion more in the U.S. by 2030 than previously expected. The announcement comes less than a week after the Trump administration confirmed it would not extend the trilateral trade agreement with Canada and Mexico, opting instead to conduct an annual review.
A Toyota spokeswoman said the company is “maintaining operations in Mexico” as Tacoma production moves from Tijuana to Texas over the next four years, but declined to provide further details. She said the company plans to continue producing Tacoma pickups at another Mexican factory in Guanajuato.
“This investment will expand Toyota’s manufacturing capabilities and complement our broader North American production network,” he said in an email to CNBC.
The move comes more than six years after Toyota confirmed it would move production of the Tacoma from its Texas plant to the Toyota Motor Manufacturing de Guanajuato plant in Mexico.
The Texas plant currently produces the Toyota Tundra full-size pickup truck, including a hybrid version, and the Toyota Sequoia hybrid SUV. Toyota previously announced it would invest $531 million in a 500 million square foot rear axle factory on campus, with production beginning in the fall.
The potential expansion plan for the San Antonio plant, codenamed “Project Orca,” was first reported by Automotive News in May.
“Toyota’s continued investment in North America is a testament to our confidence in the region’s workforce, innovation and long-term growth potential,” Ted Ogawa, CEO of Toyota Motor Corporation North America, said in a release. “By expanding our San Antonio facility, we deepen our commitment to American manufacturing and create meaningful, sustainable jobs while advancing our mission to deliver quality vehicles that meet the changing needs of our customers now and in the future.”
Toyota, which employs 48,000 people in the United States, announced that it has invested $8.3 billion in the San Antonio plant since groundbreaking in 2003.
The investment and increased production capacity could help Toyota, the world’s largest automaker, become the No. 1 automaker in the U.S. by sales.
Toyota is expected to close the gap in U.S. sales with the nation’s largest automaker. general motorsCox Automotive says hybrid cars are becoming more popular this year, and the adoption of all-electric vehicles is accelerating.
The Japanese automaker’s sales increased by 0.5% to 1.24 million units in the first half of this year compared to 2025. GM, on the other hand, reported a 6.8% decline in vehicle sales for the same period to 1.34 million units.
Toyota’s gains came as the automaker introduced new models, including all-electric vehicles, while continuing to strengthen its hybrid fleet, which has been a leader for decades.
Meanwhile, GM is investing heavily in fully electric vehicles rather than hybrids, often calling them transitional technologies. The Detroit automaker’s only hybrid vehicle is the Corvette, but it offers a full lineup of EVs for luxury brand Cadillac, as well as many models for other brands.
