Toyota to build $3.6 billion Texas plant, shift Tacoma production from Mexico

The investment

Toyota will spend $3.6 billion on a new 2.5-million-square-foot assembly plant on its San Antonio campus, set to open by 2030. The expansion will double the size of the South Side facility and create 2,000 full-time jobs. The plant currently assembles Tundra pickups and Sequoia SUVs, and a 500,000-square-foot rear axle plant is due to open this autumn. Last year, the San Antonio plant produced more than 197,000 vehicles.

Production shift

The new line will build the Tacoma, the top-selling mid-size pickup in the U.S., with production shifting from Toyota's Baja California plant in Mexico over the next four years. Toyota will continue to build Tacoma trucks at its Guanajuato plant in Mexico. The move reverses a 2020 decision that moved Tacoma assembly from San Antonio to Guanajuato; the Baja plant has built the model since 2004.

Political backdrop

The announcement comes as President Donald Trump pressures automakers to increase U.S. production and has raised tariffs on autos, steel, aluminum and parts. Toyota said it remains committed to its operations in Mexico, Canada and the U.S., and urged the administration to extend a North American free trade deal that the industry considers critical to integrated production. The shift allows Toyota to sidestep uncertainty around U.S. trade policy with Mexico and Canada.

Local incentives

The project follows a June vote by the San Antonio City Council approving roughly $143 million in incentives. In return, Toyota agreed to create 2,000 jobs paying at least Bexar County's average wage and to make a good-faith effort to hire at least half of those workers locally. Bexar County later approved a separate 10-year, $55.3 million property tax abatement and workforce development grant. Toyota officials said they chose San Antonio after a "highly competitive" site selection process but did not name other locations considered.

What they're saying

The 2,000 acres of South Texas ranchland our plant stands on today was purposefully selected for its ability to scale with vehicle demand, and today marks the first step toward realizing that potential.

The expansion will bring Toyota's total investment in its San Antonio operations to $8.6 billion since breaking ground in 2003.