Toyota Invests $3.6 Billion to Move Tacoma Production to Texas

On July 6, 2026, Toyota Motor North America announced a $3.6 billion investment to expand its manufacturing campus in San Antonio, Texas. The project will add a second vehicle assembly line and a 500,000-square-foot rear axle facility, doubling the plant's size to approximately 5 million square feet by 2030. This expansion will increase annual production capacity by 150,000 units and create 2,000 new jobs.

As part of this strategic shift, Toyota will transition the production of the Tacoma midsize pickup truck from its facility in Tijuana, Baja California, Mexico, back to San Antonio over approximately four years. This reverses a 2020 decision to move the model's production to Mexico. The company will, however, maintain production operations at its plant in Guanajuato, Mexico.

The move follows the decision by the administration of Donald Trump to opt for annual reviews rather than renewing the United States-Mexico-Canada Agreement (USMCA). The Trump administration credits the investment to its agenda of tariffs, deregulation, and tax cuts, noting that reshoring production shields the automaker from import tariffs that can reach 25%.

To secure the investment, local and state authorities provided an incentive package exceeding $300 million, including a $20 million grant from the Texas Enterprise Fund and $122 million from the San Antonio City Council. This expansion brings Toyota's total commitment to San Antonio to $8.3 billion since 2003.