Toyota is spending $3.6 billion to move the Tacoma truck from Mexico to the United States

toyota motor It announced Monday that it is investing $3.6 billion to move production of the Tacoma midsize pickup truck from a factory in Mexico to a manufacturing campus in San Antonio, Texas.

The automaker said the investment is expected to create 2,000 American jobs at the facility, add a second vehicle assembly line and nearly double the size of the 2.7 million-square-foot plant by 2030. Toyota said it will increase the plant’s annual capacity from about 200,000 to 350,000 units.

The announcement is part of Toyota’s announced plans to invest up to $10 billion more than previously expected domestically in the U.S. through 2030. It comes less than a week after the Trump administration confirmed it would not extend its trilateral trade agreement with Canada and Mexico, instead opting to conduct annual reviews.

A Toyota spokeswoman said the company is “maintaining operations in Mexico” as Tacoma production moves from Tijuana to Texas over the next four years, but declined to share additional details. She said the company plans to continue producing Tacoma pickup trucks at another Mexican plant in Guanajuato.

“This investment expands Toyota’s manufacturing capacity and complements our broader production network in North America,” she said in an email to CNBC.

This move comes more than six years after Toyota confirmed that it would move Tacoma production from the Texas plant to Toyota’s automaker plant in Guanajuato, Mexico.

The Texas plant currently produces the full-size Toyota Tundra pickup truck, including a hybrid model, and the Toyota Sequoia hybrid SUV. Toyota previously announced it was investing $531 million in a 500 million-square-foot rear axle plant on the campus that is scheduled to begin production in the fall.

Potential plans to expand the San Antonio plant, codenamed Project Orca, were first reported in May by Automotive News.

“Toyota’s continued investment in North America is a testament to our confidence in the region’s workforce, innovation and long-term growth potential,” Ted Ogawa, CEO of Toyota Motor Corporation of North America, said in a statement. “By expanding our San Antonio plant, we are deepening our commitment to American manufacturing, creating meaningful and sustainable jobs, while advancing our mission to deliver high-quality vehicles that meet the changing needs of customers today and into the future.”

Toyota, which employs 48,000 people in the United States, says it has invested $8.3 billion in the San Antonio plant since it opened in 2003.

Increased investment and production capacity could help Toyota – the world’s largest automaker – become the number one automaker in US sales.

Toyota is expected to narrow the gap in US sales with the largest American automaker, GMThis year, with hybrid vehicles becoming increasingly popular and all-electric vehicles becoming more widespread, according to Cox Automotive.

The Japanese automaker’s sales increased by 0.5% during the first half of the year compared to 2025, reaching 1.24 million cars. Meanwhile, GM reported a 6.8% decline during that period, to 1.34 million vehicles sold.

Toyota’s gains come as the automaker introduces new models, including fully electric cars, while continuing to double down on its hybrid vehicles, where it has been a leader for decades.

Meanwhile, GM has invested heavily in fully electric vehicles rather than hybrids, often referring to them as a transitional technology. The Detroit automaker’s only hybrid vehicle is the Corvette, while it offers a full lineup of electric vehicles for luxury brand Cadillac as well as several models from other brands.