Toyota Motor Corp. (NYSE:TM) revealed plans for a $3.6 billion expansion of its San Antonio manufacturing campus, news that coincided with a drop in its shares of as much as 2.6% in after-hours trading on Monday.
The automaker said the investment will finance a second vehicle assembly line at the Texas facility and is expected to support the creation of 2,000 new jobs by 2030. As part of the project, production of the Tacoma midsize truck will be transferred from Toyota Motor Manufacturing Baja California in Mexico to the enlarged San Antonio plant over an approximately four-year period.
The announced build-out will add 2.5 million square feet to the San Antonio site, effectively doubling its current footprint. Toyota said the expansion will enable the assembly of the Tacoma alongside the plant's existing production of the Tundra and Sequoia, and will accommodate rear axle assembly.
"Toyotas continued investment in North America is a testament to our confidence in the regions workforce, innovation and long-term growth potential," said Ted Ogawa, President and CEO of Toyota Motor North America. "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."
The new commitment raises Toyotas total investment in the San Antonio campus to $8.3 billion since groundbreaking in 2003. Toyota expects the local workforce at the plant to grow to roughly 6,000 team members, supported by 23 on-site suppliers and their employees. The company reported that the San Antonio facility assembled more than 197,000 vehicles last year and is the exclusive production site for the Tundra and Sequoia.
Toyota's U.S. manufacturing footprint encompasses 11 plants and directly employs approximately 48,000 people in the country. The company also noted that its North Carolina plant began assembling automotive batteries for electrified vehicles in 2025.
The announcement combines a significant capital expenditure, an internal production shift from a Mexican plant to a U.S. facility, and an explicit hiring target tied to a 2030 timeframe. Market reaction featured the after-hours share decline noted above; Toyota did not provide additional details on execution milestones or intermediate timing beyond the approximately four-year production transfer window and the 2030 jobs target.
Contextual note: Information in this report is limited to the details released by Toyota in the company statement. Where the company provided specific figures or dates those have been reported here; other implementation particulars were not disclosed.