Toyota Tacoma trucks on the sales lot at City Toyota on February 28, 2024, in Daly City, California.
Justin Sullivan | Getty Images
Toyota engine announced Monday that it will invest $3.6 billion to move production of the Tacoma midsize pickup truck from a factory in Mexico to its manufacturing campus in San Antonio, Texas.
The investment is expected to create 2,000 U.S. jobs at the plant, add a second vehicle assembly line and roughly double the size of the 2.7 million-square-foot plant by 2030, the automaker said. This will increase the plant’s annual capacity by about 200,000 to 350,000 units, Toyota said.
The announcement is part of Toyota’s announced plans to invest up to $10 billion more than previously planned in the United States through 2030. It comes less than a week after the Trump administration confirmed it would not extend its trilateral trade deal with Canada and Mexico, opting instead to conduct annual reviews.
A Toyota spokeswoman said the company was “maintaining operations in Mexico” as Tacoma production moves from Tijuana to Texas over the next four years, but she declined to share further details. The company plans to continue producing Tacoma pickup trucks at another Mexican plant in Guanajuato, she said.
“This investment increases Toyota’s manufacturing capacity and complements our broader North American production network,” she said in an email to CNBC.
The move comes more than six years after Toyota confirmed it would move Tacoma production from the Texas plant to Toyota Motor Manufacturing’s Guanajuato plant in Mexico.
The Texas plant currently produces the Toyota Tundra full-size pickup truck, including a hybrid variant, and the Toyota Sequoia hybrid SUV. Toyota previously announced it would invest $531 million in a 500 million-square-foot rear axle factory on campus, with production expected to begin in the fall.
Potential plans to expand the San Antonio plant, dubbed Project Orca, were first reported in May by Automotive News.
“Toyota’s continued investment in North America demonstrates our confidence in the region’s workforce, innovation and long-term growth potential,” Ted Ogawa, CEO of Toyota Motor North America, said in a statement. “By expanding our San Antonio facility, we are strengthening our commitment to American manufacturing, creating meaningful and sustainable jobs, while advancing our mission of providing high-quality vehicles that meet the evolving needs of customers today and tomorrow.”
Toyota, which employs 48,000 people in the United States, says it has invested $8.3 billion in the San Antonio plant since it opened in 2003.
The increase in investment and production capacity could help Toyota – the world’s largest automaker – become the number one selling automaker in the United States.
Toyota is expected to narrow the U.S. sales gap with the largest U.S. automaker, General enginesthis year, as hybrids become more popular and fully electric vehicles stumble, according to Cox Automotive.
The Japanese automaker’s sales rose 0.5% in the first half compared to 2025, to 1.24 million. GM, meanwhile, reported a 6.8% decline during that period, to 1.34 million vehicles sold.
Toyota’s gains come as the automaker has launched new models, including fully electric vehicles, while continuing to double down on its hybrid vehicles, where it has been a leader for decades.
GM, meanwhile, has invested heavily in fully electric vehicles rather than hybrids, repeatedly calling them a transitional technology. The Detroit automaker’s only hybrid is a Corvette, while it offers a full line of electric vehicles for the luxury Cadillac brand as well as numerous models for other brands.