Toyota Shifts Tacoma Production to Texas in $3.6 Billion Expansion

The transition occurs over the next four years as Toyota moves manufacturing away from its Tijuana facility. While the company maintains operations at its Guanajuato plant in Mexico, the Texas campus will now serve as a primary hub for the midsize truck, complementing existing production lines for the Tundra pickup and Sequoia SUV. This shift represents a broader commitment to domestic manufacturing, with Toyota pledging an additional $10 billion in U.S. investments through the end of the decade.

Toyota Motor North America CEO Ted Ogawa framed the expansion as a move to bolster regional growth and workforce innovation. The timing follows recent shifts in trade policy and arrives as the company aggressively challenges General Motors for the top spot in U.S. sales. Toyota’s focus on hybrid technology has provided a significant tailwind, with sales reaching 1.24 million units in the first half of the year, even as competitors struggle with a market pivot toward all-electric models. By expanding the San Antonio footprint, which has seen $8.3 billion in investment since 2003, Toyota positions itself to capitalize on the sustained consumer demand for gas-electric vehicles.