Toyota said Monday it will shift most production of its midsize Tacoma pickup from Mexico to the United States as part of a $3.6 billion investment in its San Antonio plant.
The move from Toyota’s Tijuana, Mexico, facility will take about four years, the company said. Toyota will continue building some Tacoma trucks at its plant in Guanajuato, Mexico.
At the San Antonio factory, Toyota plans to add a second assembly line, create more than 2,000 jobs, and increase annual production capacity by 150,000 vehicles, according to a company statement.
Toyota currently builds Tundra pickups and Sequoia SUVs at the San Antonio plant. It is also on track to open a rear axle assembly facility on its Texas campus this fall.
The announcement came days after Washington declined to renew a North American trade pact with Mexico and Canada, adding uncertainty for businesses.
Toyota and other automakers have been shifting production to the United States as President Donald Trump raised tariffs on automobiles, steel, aluminum, and other goods.
Automakers, including U.S. companies, produce many vehicles in Mexico and other countries under trade agreements such as the U.S.-Mexico-Canada Agreement (USMCA).
“Toyota remains committed to its operations throughout the U.S., Canada, and Mexico, and encourages a quick resolution to USMCA to make the North American region globally competitive,” Toyota said.
Although the agreement remains in force for another 10 years, Washington said last week it will now be reviewed annually, a move expected to affect investor sentiment.