The company incurred almost $9 billion in costs due to U.S. tariffs during the recent fiscal year, said a Toyota official.
Toyota Motor North America (TMNA) will invest $3.6 billion to add a second assembly line for its Tacoma trucks at the company’s manufacturing campus in San Antonio, Texas.
The San Antonio plant is a 2.2-million-square-foot site that currently employs more than 3,700 individuals. Toyota produces its Tundra truck and Sequoia sport utility vehicle at the site, which manufactured 197,506 vehicles last year. Including San Antonio, Toyota currently operates 10 manufacturing sites in the United States.
“The expansion will create 2,000 new, high-quality jobs and add 2.5 million square feet to Toyota Texas, doubling its size by 2030. TMNA will transition Tacoma production from Toyota Motor Manufacturing Baja California (TMMBC) to the expanded Toyota Texas plant over an approximate four-year period,” Toyota said in a July 6 statement.
“This latest investment will add another assembly line to the campus at Toyota Texas, which already includes a vehicle assembly line and new rear axle plant that is nearing startup.”
The decision to expand Texas production with Tacoma trucks comes more than a year after the Trump administration instituted tariffs on the import of automobiles and auto parts.
During an earnings brief on May 8, Takanori Azuma, chief risk officer and chief officer of Toyota’s accounting group, said that rising tariff duties cost the company roughly $8.8 billion for the fiscal year that ended in March.
Toyota said the latest expansion in San Antonio will bring the total amount invested at the site to $8.3 billion. The new facility will deploy advanced manufacturing technologies, increasing the local workforce to about 6,000 team members.
“Toyota’s continued investment in North America is a testament to our confidence in the region’s workforce, innovation and long-term growth potential,” TMNA CEO Ted Ogawa said.
“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.”
