Toyota plans $3.6 billion Tacoma production shift to Texas, adding a second line at San Antonio plant

Toyota said it will invest $3.6 billion to expand its San Antonio, Texas, manufacturing campus and shift most production of its Tacoma midsize pickup from Mexico to the United States. The company framed the move as part of a larger effort to strengthen its North American manufacturing footprint and make its U.S. operations more competitive.

Toyota said the transition of most Tacoma output from its Tijuana, Mexico, facility to San Antonio would take roughly four years. During that period, Toyota indicated it plans to continue producing some Tacoma trucks in Mexico, including at its Guanajuato plant, rather than eliminating Mexico production entirely.

The San Antonio campus currently builds Toyota’s Tundra full-size pickup, including a hybrid version, and the Sequoia SUV hybrid. As part of the Texas expansion, Toyota said it will add a second vehicle assembly line and increase the plant’s annual capacity from roughly 200,000 units to about 350,000 units by 2030.

Toyota also said the investment is expected to create more than 2,000 jobs in the United States. In addition to the new assembly line, Toyota said it is on track to open a rear axle assembly facility on its Texas campus in the fall, an infrastructure step that can support vehicle production by supplying key drivetrain components on-site.

The announcement adds to the pressure automakers face from uncertainty in North American trade rules, particularly as Washington has discussed changes to cross-border automotive arrangements. CBS News and CNBC reported Toyota’s decision comes amid heightened business concern about the future of U.S.-Mexico-Canada trade treatment.

A Toyota spokesperson told CNBC that the company is maintaining its operations in Mexico while Tacoma production transfers from Tijuana to Texas. Toyota did not, in the reported statements, provide further detail on the share of Tacoma units expected to remain in Mexico versus shift to Texas, beyond indicating that some production would continue at Guanajuato.

Still, the company did not disclose in the coverage how the production move will affect near-term availability, staffing at specific lines, or the timing of incremental capacity increases during the multiyear transition. It also did not provide breakdowns on which components, suppliers, or manufacturing steps will move first versus later, beyond noting the capacity expansion and the addition of rear axle assembly.

Looking ahead, investors and industry watchers will likely focus on whether Toyota’s expanded capacity in Texas translates into sustained Tacoma production ramp-ups on schedule, and whether trade policy changes alter the economics of shipping vehicles across the border during and after the transition.