Toyota, in $3.6 billion move, shifting Tacoma production to Texas from Mexico

Toyota said Monday it will shift most production of its midsize Tacoma pickup truck from Mexico to the United States as part of a $3.6 billion investment in its San Antonio, Texas, plant. The Japanese auto giant said the transition from Toyota’s Tijuana plant in Mexico will take about four years.

Announcement coming in a few days Washington refused to renew North America’s trade deal with Mexico and Canada adds uncertainty for businesses.

Toyota said this in November Plans to invest up to 10 billion dollars in the United States within the next five years.

Toyota, the world’s largest automaker by vehicle sales, plans to build a second assembly line at its San Antonio plant, creating more than 2,000 jobs and increasing annual production capacity at the facility by 150,000 units. he said in a statement.

“The investment aims to further develop Toyota’s locally rooted and competitive production system,” the company said.

Toyota will also continue to produce some Tacoma trucks at its Guanajuato, Mexico plant.

It produces Tundra pickups and Sequoia SUVs at its San Antonio plant and is on track to open a rear axle assembly plant at its Texas campus this fall.

Toyota and other major automakers are shifting production to the United States as President Trump raises tariffs on autos, steel and aluminum, among other items.

Global automakers, including U.S. companies, produce many vehicles in Mexico, among other countries, to take advantage of various trade agreements, including the existing United States-Mexico-Canada Agreement (USMCA).

“Toyota remains committed to its operations throughout the United States, Canada and Mexico and encourages a rapid resolution to the USMCA to make the North American region globally competitive,” Toyota said in a statement announcing its plans Monday. he said.

Although that agreement remains in effect for another 10 years, Washington said last week that the trade deal will now be reviewed annually, a move expected to impact investor sentiment.