Toyota is investing $2 billion to expand its truck assembly plant in San Antonio, Texas, creating 2,000 new jobs in the process, public records show.
According to a May 15 filing submitted to the Texas Comptroller of Public Accounts and seen by Reuters, the site would be located in Bexar County in South Texas, right next to Toyota’s truck assembly plant in San Antonio.
The existing site, which currently makes full-size Tundra pickups and Sequoia SUVs, built almost 200,000 vehicles with around 3,700 employees last year.
Is Toyota Bringing Tacoma Production Back to Texas?
The new facility, which is dubbed “Project Orca,” will help Toyota expand U.S. production through the creation of a new production assembly line. It’s not clear if the new line will be used to supplement Tundra and Sequoia production.
Still, the scale of the investment suggests a new model might be relocated to Texas, and the Tacoma—America’s best-selling mid-size truck—looks like a plausible candidate. Tacoma used to be made in Texas until 2021, when Toyota moved all Tacoma production to two Mexico plants. Now that the U.S. imposes a 25% tariff on Mexican-made vehicles despite the USMCA trade deal, it makes sense for Toyota to move Tacoma production for the U.S. market back to Texas.
Construction of the new plant will begin this year and is expected to be completed in 2029, with operations scheduled to start in 2030, according to the application.
The proposed expansion is part of a broader trend of global automakers reorganizing their supply chains and manufacturing strategies to adapt to the new U.S. trade policy that pressures carmakers to bolster domestic production, and shifting consumer demand.
The move would significantly expand Toyota’s manufacturing capacity in its largest market as rivals including Ford and General Motors in the U.S., as well as Nissan and Honda in Japan, are cutting down on expenses.
The Move Is Likely Part of Toyota’s $10 Billion U.S. Investment Pledge
A Toyota USA spokesperson told Reuters in a statement that the company has nothing further to announce at this time, adding that “our production philosophy is to build where we sell and buy where we build.”
“We regularly evaluate our manufacturing footprint to ensure we remain competitive and aligned with customer demand,” the carmaker said. “This reflects our long-term commitment of investing in the North American region, local manufacturing/jobs, and suppliers.”
Toyota CEO Kenta Kon already hinted at the Texas plant expansion during an earnings call last week, when the noted that the key to utilizing production capacity included building new factories.
The factory expansion is likely part of Toyota’s previously announced plan to invest as much as $10 billion in U.S. projects over five years to boost production. Announced last November, the plan came in response to U.S. President Donald Trump’s 15% tariffs on cars and car parts imported to the United States from Japan.
The strategy includes a $912 million investment pledge to boost production of hybrid components and vehicles across five states, including West Virginia, Kentucky, Mississippi, Tennessee and Missouri, where 252 new jobs would be created as a result.
In March, Toyota also announced a $1 billion investment in Kentucky—$800 million to increase RAV4 and Camry capacity and add a new BEV line—and Indiana—$200 million to increase capacity for the Grand Highlander hybrid SUV.
