Toyota said Monday it will shift most production of its mid-size Tacoma pickup truck from Mexico to the United States as part of a $3.6 billion investment in its San Antonio, Texas, plant. The transition from Toyota's Tijuana, Mexico, facility will take roughly four years, the Japanese auto giant said.
The announcement comes just days after Washington declined to renew a North American trade pact with Mexico, as well as Canada, fueling uncertainty for businesses.
Toyota said in November it planned to invest as much as $10 billion in the United States over the next five years.
Newly assembled vehicles are seen at a stockyard of the Toyota automobile plant in Tijuana, Mexico, in April 2017.
Jorge Duenes/REUTERS
The world's largest automaker by vehicle sales, Toyota plans to build a second assembly line at its San Antonio factory, creating more than 2,000 jobs and increasing annual production capacity at the plant by 150,000 units, the company said in a statement.
"The investment is aimed at further enhancing Toyota's locally rooted and competitive production system," the company said.
Toyota will also keep building some Tacoma trucks at its Guanajuato, Mexico, plant.
It produces Tundra SUVs and Sequoia pickups at its San Antonio plant and is on track to open a rear axle assembly facility on its Texas campus this fall.
Toyota and other major automakers are shifting production to the United States as President Trump raises tariffs on automobiles, steel and aluminum, among other items.
Global automakers -- including U.S. companies -- produce many vehicles in Mexico, among other countries, to benefit from various trade deals including the existing US-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 as it announced its plans Monday.
Although that pact remains in force for another 10 years, Washington said last week that the trade agreement will now be reviewed annually, a move expected to impact investor sentiment.
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