Toyota announces big investment in U.S. manufacturing
By Easton Martin | July 7, 2026
Toyota announced a big change in its North American manufacturing strategy, unveiling a 3.6 billion dollar investment to expand its assembly plant in San Antonio, Texas. This will bring the majority of its midsize Tacoma pickup production back to the United States.
The project will add a second vehicle assembly line to the Texas facility, doubling its physical footprint by adding 2.5 million square feet of factory space. According to the automaker, the expansion will create more than 2,000 new jobs and increase the plant’s annual production capacity by 150,000 units.
Toyota plans to phase out Tacoma assembly at its facility in Tijuana, Mexico, transitioning that volume to Texas over the next four years. The company expects the entire expansion to be completed by 2030. Toyota will continue to build some Tacoma pickups at its second Mexican plant in Guanajuato, which will not be affected by the move.
The announcement follows recent trade policy developments in Washington, where federal officials declined to renew the United States Mexico Canada Agreement, opting instead for an annual review process. The ongoing implementation of automotive tariffs has driven several global manufacturers to secure production volumes directly within the American market.
In a statement, Toyota Motor North America President and CEO Ted Ogawa said the expansion reflects the company’s confidence in the regional workforce and long term growth potential. He stated that the investment deepens Toyota’s commitment to American manufacturing while allowing the company to meet changing customer needs.
State and local officials finalized an incentive package valued at more than 303 million dollars to secure the expansion. The agreement includes local property tax abatements, infrastructure grants, and funding for a new four lane roadway connecting the campus to U.S. Highway 281. Under the terms of the local agreement, Toyota must pay workers at least 32.46 dollars an hour, matching the average annual wage for the county.
