Toyota Texas campus with the new rear axle plant in the foreground.
SAN ANTONIO, Texas - Toyota Motor North America will invest $3.6 billion to expand its San Antonio manufacturing campus, according to a press release from Toyota and the Office of the Texas Governor.
In the release, they went into detail on adding a second vehicle assembly line that will bring production of the Toyota Tacoma pickup truck to Texas and create 2,000 new jobs.
Toyota Tacoma truck production from Mexico to San Antonio
(Mathew Cerasoli/Flickr)
What we know:
Toyota announced on Monday that the expansion will add 2.5 million square feet to the existing campus in San Antonio, doubling the size of the facility by the year 2030. The San Antonio plant currently assembles the Toyota Tundra pickup and Sequoia SUV. Toyota Tacoma production will transition from manufacturing in Mexico to the expanded San Antonio plant.
Once the expansion is complete, the Tacoma will join the lineup, making Texas the production site for all three vehicles. The campus also includes a new rear axle plant that is expected to begin production in Fall 2026.
The San Antonio plant produced more than 197,000 vehicles last year, according to Toyota. The company's workforce there is expected to grow to about 6,000 employees.
Toyota's total investment in San Antonio reaches $8.3B
TORONTO, ONTARIO, CANADA - 2020/06/12: A Toyota sign on car dealer during the daytime. The sky is blue with some clouds. (Photo by Roberto Machado Noa/LightRocket via Getty Images)
What they're saying:
Toyota said the San Antonio site was selected after what it described as a highly competitive process.
According to the news release from Toyota, the project brings Toyota's total investment in its San Antonio operations to $8.3 billion since construction began in 2003.
"Toyota's continued investment in North America is a testament to our confidence in the region's workforce, innovation and long-term growth potential," Toyota Motor North America President and CEO Ted Ogawa said in a statement.
"By expanding our San Antonio plant, we are deepening our commitment to American manufacturing, creating meaningful and sustainable jobs."
State grants and incentives drive Texas jobs
AUSTIN, TEXAS - FEBRUARY 18: The exterior of the Texas State Capitol on February 18, 2023 in Austin, Texas. (Photo by Brandon Bell/Getty Images)
Local perspective:
Texas Gov. Greg Abbott said the project demonstrates Texas' strength as a manufacturing hub. The state is supporting the expansion with a $20 million Texas Enterprise Fund grant, a $50,000 Veteran Created Job Bonus and incentives available through the Texas Jobs, Energy, Technology and Innovation (JETI) program.
"Texas is where the world builds bigger, and Toyota shows it once more with a $3.6 billion expansion in San Antonio that doubles their factory footprint and creates 2,000 new jobs," Abbott said.
The second vehicle assembly line at Toyota Texas will be located on the existing campus.
Frank Voss, president of Toyota Texas and group vice president of truck manufacturing for Toyota Motor North America, said the 2,000-acre site was originally chosen with future growth in mind.
"The 2,000 acres of South Texas ranchland our plant stands on today was purposefully selected for its ability to scale with vehicle demand," Voss said. "We're excited to add the beloved Tacoma to our existing award-winning lineup."
State and local officials, including San Antonio Mayor Gina Ortiz Jones and Bexar County Judge Peter Sakai, praised the expansion, saying it will strengthen the regional economy and create new employment opportunities.
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Big picture view:
The company said it remains committed to its manufacturing operations across the United States, Canada and Mexico while encouraging a resolution to issues surrounding the U.S.-Mexico-Canada Agreement, known as USMCA.
The Source: Information in this article was provided by Texas Governor Greg Abbott and Toyota Motor Manufacturing.