Toyota to invest $3.6 billion in Texas plant expansion

Toyota will spend $3.6 billion to build a second vehicle assembly line at its San Antonio, Texas plant. The new line is scheduled to open in 2030, add 2.5 million square feet of space, and raise yearly production capacity by roughly 150,000 units of the Tundra, Sequoia, and Tacoma models.

The company said the expansion will move Tacoma production from its Baja California plant to Texas over about four years. Last year the San Antonio facility produced 197,000 vehicles and is the only site making the Tundra and Sequoia.

Investment and job impact The latest outlay brings Toyota's cumulative investment in the Texas site to $8.3 billion since ground was broken in 2003. Company officials stated the project will create more than 2,000 new positions. A company executive said the decision reflects confidence in the North American workforce and long-term growth.

The firm also called for a quick resolution to issues surrounding the US-Mexico-Canada Agreement.

Trade context Under the current agreement, compliant auto parts face no tariff while finished vehicles are subject to a 27.5 percent tariff. Trade office representatives said Washington has ended renewal talks because of existing issues. The president posted on social media that the move from Mexico to Texas is a "really big deal" and evidence that tariffs are working.

Texas Lieutenant Governor Dan Patrick said the project will generate billions in local economic activity and supply high-paying jobs for the San Antonio area.