TOKYO, Japan: Toyota has announced a $3.6 billion investment in its Texas manufacturing facility, including plans to move production of its popular mid-size Tacoma pick-up truck from Mexico to the United States.
The Japanese automotive giant said on Tuesday that it would build a second assembly line at its San Antonio plant, creating more than 2,000 jobs and increasing the facility’s annual production capacity by 150,000 vehicles.
Toyota said the new production line is expected to become operational in 2030 as part of efforts to strengthen its local manufacturing network and maintain a competitive production system in the US market.
“The investment is aimed at further enhancing Toyota’s locally rooted and competitive production system,” the company said in a statement.
The announcement comes amid rising uncertainty over North American trade policies after Washington decided not to renew its existing trade arrangement with Mexico and Canada, raising concerns among businesses operating across the region.
Toyota had previously announced plans in November to invest up to $10 billion in the United States over the next five years as part of its broader expansion strategy.
The world’s largest automaker by vehicle sales is among several global car manufacturers increasing production in the US as President Donald Trump’s administration raises tariffs on automobiles, steel and aluminium imports.
For years, international and American automakers have relied on manufacturing facilities in Mexico to benefit from regional trade agreements, including the US-Mexico-Canada Agreement (USMCA).
However, Washington’s decision to conduct annual reviews of the pact, despite it remaining in force for another decade, has added to investor concerns.
Following the announcement, Toyota shares gained 1.3 per cent during morning trading, while Japan’s benchmark Nikkei index fell 1.2 per cent.
