Toyota $TM Motor North America announced Monday it will invest $3.6 billion to expand its San Antonio manufacturing campus, adding a second vehicle assembly line to bring Tacoma midsize pickup truck production back to the U.S. from Mexico.
When complete, the new facility will encompass 2.5 million square feet and is expected to bring 2,000 positions to the campus by 2030, Toyota said. The shift away from the Baja California facility is expected to take roughly four years to complete, with production phased in gradually at the Texas campus. The automaker will continue building Tacomas at a separate plant in Guanajuato, Mexico.
San Antonio's existing operations turn out nearly 200,000 vehicles each year, with the Tundra full-size pickup and Sequoia SUV as its current products. The Tacoma line will add roughly 150,000 trucks annually to that output, according to The Wall Street Journal. Toyota's San Antonio headcount currently stands at roughly 3,700 workers, a figure the automaker expects to climb to around 6,000 as the expansion comes online.
Counting this latest commitment, Toyota will have poured a cumulative $8.3 billion into the San Antonio campus going back to when the site first opened in 2003. Toyota said the expansion was supported by the Texas Enterprise Fund and the state's JETI program. According to Reuters, Governor Greg Abbott $ABT announced that the project is eligible for a $20 million grant from the state.
Bringing the Tacoma back to Texas undoes a decision from 2020, when San Antonio lost the truck's production to the Guanajuato facility in central Mexico. The Baja California facility has produced the Tacoma since 2004.
The San Antonio project is one piece of a broader domestic spending pledge — Toyota has committed to putting up to $10 billion beyond its earlier projections into American manufacturing by 2030. The timing is notable: the White House allowed a July 1 deadline to lapse without renewing the trilateral North American trade agreement, shifting instead to a year-by-year review process, according to CNBC, leaving the future of cross-border auto production uncertain. Toyota said it remains committed to operations across the U.S., Canada, and Mexico, and urged a quick resolution to the trade agreement.
Tariffs have weighed on Toyota's finances. The automaker's North American division swung to an operating loss in the fiscal year ended March 31, 2026, with U.S. tariffs stripping roughly ¥1.38 trillion — about $9 billion — from operating income. Under current trade policy, the non-U.S. content in Mexican-assembled vehicles can draw American tariffs of up to 25%, according to Bloomberg. Toyota also faces the steepest tariff bill of any single automaker, projecting roughly $9.1 billion in tariff costs for the current fiscal year.
"By expanding our San Antonio plant, we are deepening our commitment to American manufacturing, creating meaningful and sustainable jobs," Toyota Motor North America President and CEO Ted Ogawa said in a statement.