Toyota plans $3.6bn Texas shift for Tacoma production

Toyota Motor said Monday it will invest $3.6bn to transfer production of its Tacoma midsize pickup from Tijuana, Mexico, to its manufacturing campus in San Antonio, Texas. The company said the project will create 2,000 US jobs, add a second vehicle assembly line and raise the plant’s annual capacity to about 350,000 vehicles from roughly 200,000 by 2030.

The investment will also nearly double the size of the 2.7mn-square-foot San Antonio facility, according to Toyota. Adding an assembly line increases output by creating another parallel flow of production stations, allowing the plant to build more vehicles without relying only on longer shifts or higher speed on existing equipment.

Toyota said the spending is part of its plan to invest up to $10bn more than it previously expected in the United States through 2030. The announcement came less than a week after the Trump administration said it would not extend the trilateral trade agreement with Canada and Mexico, choosing annual reviews instead.

A Toyota spokeswoman told CNBC that the company is “maintaining its operations in Mexico” as Tacoma production moves from Tijuana to Texas over the next four years. She said Toyota will continue building Tacoma pickups at its Guanajuato plant in Mexico, but declined to provide further details.

“This investment expands Toyota’s manufacturing capacity and complements our broader North American production network,” the spokeswoman said in an email to CNBC.

The San Antonio site already builds the Toyota Tundra full-size pickup, including a hybrid version, and the Toyota Sequoia hybrid sport utility vehicle. Toyota has also announced a separate $531mn investment for a rear-axle facility on the same campus, with production scheduled to begin in the fall.

Automotive News first reported in May that Toyota was considering an expansion of the San Antonio plant under the code name Project Orca.

Toyota Motor North America Chief Executive Ted Ogawa said in a company release that the expansion reflects the automaker’s confidence in North America’s workforce, innovation and long-term growth potential. He said the San Antonio investment would add manufacturing capacity, support US jobs and help Toyota meet changing customer demand.

Toyota says it employs 48,000 people in the United States and has invested $8.3bn in the San Antonio plant since the project broke ground in 2003.

The added pickup capacity comes as Toyota narrows the US sales gap with General Motors, according to Cox Automotive. Cox has forecast that Toyota will move closer to GM this year as hybrids gain share and all-electric vehicle sales slow.

Toyota reported US sales of 1.24mn vehicles in the first half of the year, up 0.5% from the same period in 2025. GM reported 1.34mn US vehicle sales over the same span, down 6.8%.

Toyota has continued to introduce new models, including all-electric vehicles, while maintaining a large hybrid lineup. GM has invested heavily in electric vehicles and offers a broad EV range through Cadillac and other brands, while its only hybrid model is a Corvette, according to CNBC.

This story draws on original reporting from CNBC.