Toyota plans $3.6B expansion to Texas plant for Tacoma production

The Japan-based manufacturer will invest $3.6 billion to expand its San Antonio plant to include a second assembly line producing Tacoma trucks, Toyota shared on Monday. The expansion is expected to double the plant’s size by 2030 and create about 2,000 high-quality jobs. Toyota plans to transition its Tacoma production away from Baja California, Mexico, and into Texas over the next four years, according to the company.

The Department of Labor released a Monday statement celebrating the planned investment, and reported that Toyota may invest up to $10 billion more by 2030. Toyota President and CEO Ted Ogawa described the multibillion-dollar investment as a testament to the company’s faith in the American workforce. The San Antonio expansion will deepen Toyota’s commitment to American manufacturing while creating meaningful, sustainable jobs and delivering high-quality vehicles, Ogawa added.

President Donald Trump commented on the investment at the NATO summit in Turkey on Tuesday, attributing the investment to his controversial tariffs. Toyota is moving out of Mexico to build one of the biggest truck plants ever built in the United States, and that’s what the correct use of tariffs will do, Trump said. Texas Republican Sens. John Cornyn and Ted Cruz also released statements celebrating the investment in their state.

How is Mexico responding? The Mexican government released a Monday statement clarifying that other automotive jobs and production would remain in Mexico despite the Tacoma production shift. Toyota will continue operating its Guanajuato plant, which directly provides about 2,800 jobs, and indirectly generates even more jobs throughout the region, according to the statement.

The government also noted that Toyota’s shift away from Tijuana would be gradual and finish four years from now. Mexico’s Ministry of Economics also previewed a $500 million investment from another unnamed automotive company, which the government planned to announce in the near future.