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Toyota Moves Most Tacoma Production From Mexico to San Antonio in $3.6B Expansion

The plan is meant to cut tariff exposure by adding a second assembly line on the San Antonio campus with public incentives tied to worker pay and community investment.

Overview

  • Toyota announced Monday that it will invest $3.6 billion to add a 2.5 million square foot assembly building at its San Antonio campus and phase most Tacoma production from Baja California to Texas over about four years.
  • The expansion will double the plant’s footprint by 2030, add a second vehicle assembly line and raise annual capacity by roughly 150,000 units while creating about 2,000 new jobs.
  • State and local officials assembled an estimated $303 million package of tax abatements, grants and infrastructure support that requires Toyota to pay a minimum hourly rate tied to the county average and to spend part of the abatement savings on worker training, transportation or childcare.
  • Toyota said it will continue some Tacoma output at its Guanajuato plant and stressed it remains committed to operations across North America while urging a stable USMCA outcome as trade and tariffs have influenced its site planning.
  • The move reduces Toyota’s exposure to higher U.S. duties on Mexican-assembled vehicles, could prompt wider supply-chain shifts for regional auto production, and will phase hiring and construction through 2028–2030 with local impacts on wages, transit and workforce training.