Toyota to spend $3.6 billion to move Tacoma truck from Mexico to U.S.

Toyota Motor On Monday, Tacoma announced it would invest $3.6 billion to move production of the midsize pickup truck from a factory in Mexico to its San Antonio, Texas, manufacturing campus.

The investment is expected to create 2,000 U.S. jobs at the facility, add a second vehicle assembly line and roughly double the size of the 2.7 million-square-foot facility by 2030, the automaker said. Toyota said the plant’s annual capacity will be increased from approximately 200,000 to 350,000 units.

The announcement is part of Toyota’s plans to invest $10 billion more in the US by 2030 than previously expected. This comes less than a week after the Trump administration confirmed it would not extend the trilateral trade agreement with Canada and Mexico, opting instead for annual reviews.

A Toyota spokesman said the company “continues its operations in Mexico” as Tacoma production is due to be transferred from Tijuana to Texas within the next four years, but declined to share further details. He said the company plans to continue producing Tacoma pickups at another Mexican plant in Guanajuato.

“This investment expands Toyota’s production capacity and complements our broader North American production network,” he said in an email to CNBC.

The move comes more than six years after Toyota confirmed it would shift production of the Tacoma from its Texas plant to a Mexico facility at Toyota Motor Manufacturing de Guanajuato.

The Texas plant currently produces the full-size Toyota Tundra pickup truck and the Toyota Sequoia SUV hybrid, including a hybrid version. Toyota had previously announced that it would invest $531 million in the 500 million square meter rear axle factory on the campus, which is planned to start production in the fall.

Potential plans to expand the San Antonio facility codename Project Orcafirst reported by Automotive News in May.

“Toyota’s continued investment in North America is a testament to our confidence in the region’s workforce, innovation and long-term growth potential,” Ted Ogawa, CEO of Toyota Motor North America, said in a statement. “By expanding our San Antonio factory, we are deepening our commitment to American manufacturing, creating meaningful and sustainable jobs, while advancing our mission to deliver high-quality vehicles that meet customers’ changing needs today and into the future.”

Toyota, which employs 48,000 people in the USA, announced that it has invested $8.3 billion in its San Antonio factory since the groundbreaking ceremony in 2003.

Increased investment and production capacity could help Toyota, the world’s largest automaker, become the No. 1 automaker in U.S. sales.

Toyota is expected to narrow the gap in U.S. sales with America’s largest automaker. General EnginesThis year, as hybrids become more popular and all-electric vehicles are selling out fast, according to Cox Automotive.

The Japanese automaker’s sales increased by 0.5% to 1.24 million in the first half of the year compared to 2025. Meanwhile, GM reported 1.34 million vehicles sold during that period, a decline of 6.8%.

Toyota’s gains come as the automaker rolls out new models, including all-electric vehicles, and continues to double down on hybrids, where it has been a leader for decades.

GM, meanwhile, has invested heavily in all-electric vehicles rather than hybrids, often referring to them as a transitional technology. The Detroit automaker’s only hybrid is the Corvette, and the luxury brand offers a full EV lineup for Cadillac as well as many models for other brands.