In a significant move for the automotive industry, Toyota Motor Corp announced plans to construct a new $3.6 billion auto plant in Texas. This decision, made public on a Monday, is part of the company's strategy to shift some of its truck production from Mexico to the United States. The new facility will be located on Toyota's existing San Antonio manufacturing campus and is expected to open by 2030, creating approximately 2,000 jobs in the region. The company will relocate the production of its mid-size Tacoma pickup truck from its Baja California plant in Mexico to the new Texas facility once it is completed. Toyota's announcement has garnered positive reactions from various stakeholders, including the White House, which has been advocating for increased manufacturing within the United States. President Donald Trump has previously urged automakers to bring production back to the country and has implemented tariffs on autos, steel, aluminum, and parts to encourage this shift. Following the announcement, Trump expressed his approval, stating that the tariffs are effectively promoting domestic manufacturing and benefiting American workers. White House press secretary Karoline Leavitt echoed this sentiment, highlighting the administration's commitment to revitalizing American manufacturing. Despite the move to Texas, Toyota has emphasized its ongoing commitment to its operations in Mexico, Canada, and the United States. The company has urged the Trump administration to extend a North American free trade agreement, which is deemed essential for the integrated production of automobiles across the continent. In 2020, Toyota had previously shifted Tacoma production from San Antonio to its Guanajuato plant in Mexico, alongside the Baja plant that had been producing the truck since 2004. This latest decision marks a significant reversal in that strategy. Texas Governor Greg Abbott has welcomed the investment, noting that it will qualify for a $20 million state grant and other incentives. The announcement comes at a time when Toyota is also preparing to open a new 500,000-square-foot rear axle plant in the autumn. The company has faced challenges, including rising costs due to tariffs imposed by the Trump administration, but it has also successfully lobbied for the rollback of certain California emissions rules and electric vehicle requirements. The overall investment in Texas is seen as a positive development for the local economy and a testament to the ongoing changes in the automotive manufacturing landscape.
Toyota Motor Corp said on Monday it will build a new $3.6 billion auto plant in Texas and shift some truck production to the United States from Mexico,