Toyota to build $3.6 billion Texas plant, shift some truck production from Mexico

WASHINGTON — Toyota Motor Corp. said Monday that it will build a new $3.6 billion auto plant in Texas and shift some production of its Tacoma pickup truck to the United States from Mexico.

The Japanese automaker said the new 2.5-million-square-foot facility will be built at its San Antonio manufacturing campus and is expected to open by 2030, creating about 2,000 jobs. Production of the mid-size Tacoma pickup truck will move from Toyota’s Baja California plant in Mexico to Texas once the new factory is completed.

Toyota will continue producing Tacoma trucks at its Guanajuato plant in Mexico. The company currently builds Tundra trucks and SUVs at its existing San Antonio assembly plant, where a new 500,000-square-foot rear axle facility is also scheduled to open in the fall.

The investment comes as President Donald Trump continues to pressure automakers to expand manufacturing in the United States and has imposed higher tariffs on automobiles, steel, aluminum, and auto parts.

Toyota said it remains committed to its operations in Mexico, Canada, and the United States, while urging the administration to extend the North American free trade agreement, which automakers say is essential to maintaining integrated vehicle production across the region.

In 2020, Toyota moved Tacoma production from San Antonio to its Guanajuato facility, joining the Baja California plant, which had produced the truck since 2004.

Texas Governor Greg Abbott said the investment will qualify for a $20 million state grant and other incentives.

A White House spokesperson said Toyota’s investment announcement was among several decisions being influenced by the Trump administration’s policies on tariffs, deregulation, and tax cuts.

Last year, Toyota Chairman Akio Toyoda drew attention after wearing a 2024 Trump-Vance T-shirt and a red “Make America Great Again” hat, receiving praise from Trump and criticism from environmental groups.

Toyota has also successfully lobbied Congress and the White House to roll back California emissions regulations and other electric vehicle requirements. However, the automaker has faced billions of dollars in additional costs due to Trump’s tariffs.

-Reporting by David Shepardson; Editing by Nia Williams/Reuters