Japanese carmaker Toyota has announced a $3.6 billion investment in its manufacturing plant in San Antonio, Texas, as it moves production of its mid-size Tacoma pick-up truck from Mexico to the United States.
According to AFP, as published by Channels Television, the investment will fund the construction of a second assembly line at the Texas facility, creating more than 2,000 jobs and increasing the plant’s annual production capacity by 150,000 vehicles.
Toyota said the expansion is intended to strengthen its US manufacturing footprint and improve its locally based production system. The new assembly line is expected to begin operations in 2030.
The announcement follows Washington’s recent decision not to renew a North American trade pact with Mexico and Canada under its previous terms, increasing uncertainty for businesses operating across the region.
In November, Toyota announced plans to invest up to $10 billion in the United States over the next five years. The latest investment forms part of that broader strategy.
The move also comes as US President Donald Trump continues to impose higher tariffs on imported automobiles, steel and aluminium, prompting several global automakers to increase production within the United States.
For years, Toyota and other international car manufacturers have relied on production facilities in Mexico to benefit from regional trade agreements, including the US-Mexico-Canada Agreement (USMCA).
Although the USMCA remains in force for another decade, Washington said last week that the agreement will now undergo annual reviews, a decision analysts believe could affect future investment planning.
Following the announcement, Toyota shares rose 1.3 per cent during morning trading, while Japan’s benchmark Nikkei index fell 1.2 per cent.
