Toyota plans a major expansion of its Texas truck plant in San Antonio, with a €3.5 billion investment to add a second assembly line. This expansion will shift production of 150,000 Toyota Tacoma pickups from Baja California, Mexico, to the U.S. by 2030.
Details of the Texas Plant Expansion
The expansion will nearly double the size of the current plant, adding about 2.5 million square feet to the existing 2.2 million square feet facility. The new line will have the capacity to produce 150,000 vehicles annually.
- Investment amount: €3.5 billion (~$3.6 billion)
- Location: San Antonio, Texas
- Additional space: 2.5 million square feet
- New production capacity: 150,000 vehicles per year
- Current workforce: 3,700 workers; expected 2,000 new jobs
- Also hosts 23 suppliers with 5,600 employees and a recently built €515 million axle plant
Returning Tacoma Production to the U.S.
Toyota’s decision will bring most Tacoma midsize pickup assembly back from its Baja California plant, starting in 2030. The Tacoma will continue to be built at Toyota’s Guanajuato, Mexico plant unaffected by this change.
- Baja plant opened in 2004, mainly producing Tacoma pickups
- Tacoma production consolidated in Mexico since 2021
- Texas plant originally produced Tundra and Tacoma before 2021
- Shift aims to reduce the impact of tariffs on Mexican-built vehicles
Why the Change Matters
The move is partly driven by tariffs imposed on Mexican-built vehicles by the U.S., which add about 25% cost to those imports. Toyota faces billions in tariff expenses and hopes the production shift will ease some of these costs.
The Tacoma is Toyota’s third-best-selling model in the U.S., with over 274,000 sales last year. Despite high tariffs, price increases for Tacoma have been moderate, reflecting Toyota’s efforts to avoid passing full tariff costs to customers.
Looking Ahead
The expansion is part of Toyota’s broader $9.7 billion investment plan in North America through 2030. While Toyota hasn’t confirmed exact plans for the Baja California plant post-2030, the facility’s location and size suggest it could be repurposed for other models or export markets.
Toyota’s CEO for North America, Ted Ogawa, highlighted that this investment signals strong confidence in the North American workforce and market. The expanded San Antonio plant will create sustainable U.S. jobs and support Toyota’s goal to build vehicles that meet evolving customer needs.
Overall, Toyota’s Texas plant expansion reflects a strategic push to strengthen U.S. manufacturing and manage economic and trade challenges that affect its truck production.
Source: autonews.com