Toyota is investing $3.6 billion to shift most of its Tacoma pickup truck production from Mexico to its San Antonio, Texas plant, a move that will create over 2,000 jobs and increase annual production capacity by 150,000 units.
The Japanese automaker will transition production from its Tijuana, Mexico facility over the next four years, with the San Antonio plant set to build a second assembly line to accommodate the increased production.
Tacoma Production Shift
The decision comes as the US, Mexico, and Canada face uncertainty over trade agreements, with the US recently declining to renew a North American trade pact, fueling concerns for businesses operating in the region.
Toyota plans to keep building some Tacoma trucks at its Guanajuato, Mexico plant, while its San Antonio factory will continue to produce Tundra SUVs and Sequoia pickups, with a new rear axle assembly facility set to open on the Texas campus this fall.
The move is part of Toyota’s larger plan to invest up to $10 billion in the US over the next five years, as the company aims to enhance its locally rooted and competitive production system.
Implications and Reactions
The shift in production is seen as a response to the changing trade landscape, with President Trump’s tariffs on automobiles, steel, and aluminum prompting many automakers to reconsider their production strategies.
Toyota’s decision to invest in its US operations is a significant development, as global automakers, including US companies, have long benefited from trade deals such as the US-Mexico-Canada Agreement (USMCA) to produce vehicles in Mexico and other countries.
