Toyota will invest $3.6 billion to expand its San Antonio plant and move Toyota Tacoma production from Mexico to Texas over the next four years. The shift adds about 2,000 jobs and gives the company a larger U.S. manufacturing base just as pickup output is being reorganized across North America.
San Antonio Gets 2 Assembly Lines
The project adds a second vehicle assembly line at the San Antonio campus, where Toyota already builds the Tundra and Sequoia. The expansion is expected to add about 2.5 million square feet and effectively double the site by 2030, lifting Toyota's total investment there to $8.3 billion since construction began in 2003.
Once completed, the San Antonio workforce is expected to reach approximately 6,000 employees, supported by 23 onsite suppliers. Toyota said the expanded facility will use advanced manufacturing technologies designed to increase production flexibility, a practical requirement when one plant has to absorb more than one model line and supplier activity around it.
Greg Abbott Names $20 Million Grant
Greg Abbott said the expansion will qualify for a $20 million state grant and other incentives. That state support lowers the cost of the move for Toyota while tying Texas incentives to the added assembly line, the new jobs and the supplier base that comes with them.
Tacoma production will gradually transition from Toyota's Baja California plant in Mexico over the next four years, but Toyota will continue producing Tacoma pickups at its Guanajuato, Mexico, plant. Toyota previously moved Tacoma production from San Antonio to Guanajuato in 2020, then shifted the model back again with Monday's announcement.
North America Supply Split
Toyota said it remains committed to manufacturing across the United States, Canada and Mexico, even as it shifts Tacoma production to Texas. The company also said it encourages a swift resolution to issues surrounding the U.S.-Mexico-Canada Agreement, signaling that the plant move sits inside a broader trade structure rather than outside it.
More than 197,000 vehicles rolled off the San Antonio plant last year, and production at a new rear axle facility is expected to begin later this year. For workers and suppliers, the immediate change is not a single-day switch but a staged ramp that spreads work, equipment and hiring across four years while Tacoma output is reallocated inside Toyota's regional network.
How many of the expected 2,000 jobs will be permanent plant jobs versus supplier or construction jobs is the one number Toyota has not broken out, and that split will determine how much of the expansion reaches the shop floor versus the surrounding supplier base.
