Toyota (TM.US) has submitted an application to establish a new manufacturing facility in Texas. According to documents filed with the Texas Comptroller of Public Accounts on Friday, the project is located in Bexar County, with a total investment of $2 billion. The documents also indicate that the upcoming plant will create 2,000 new jobs. Based on the application, construction is set to begin this year, with completion expected in 2029 and operations commencing in 2030.
The automaker is planning to build a new assembly line adjacent to its existing truck plant in the state, aiming to strengthen its growth momentum in the U.S. This move comes as former U.S. President Donald Trump pressures automakers to increase domestic production.
The proposed expansion is part of a broader trend among global automakers to reshape supply chains and production strategies in response to U.S. trade policies and evolving consumer demands. This initiative will deepen Toyota's production footprint in its largest market, the U.S., at a time when competitors such as Ford (F.US), General Motors (GM.US), Nissan, and Honda (HMC.US) are scaling back.
A U.S. spokesperson for Toyota stated that there is no additional information to announce at this time, adding, "Our production philosophy is to build where we sell and source where we produce." The company noted in a statement, "We regularly evaluate our production layout to ensure we remain competitive and aligned with customer needs. This reflects our long-term investment commitment to North America, local manufacturing/employment, and suppliers."
Toyota CEO Koji Sato hinted at expansion plans during an earnings call last week, emphasizing that the key to utilizing capacity lies in constructing new facilities. The proposed site in Texas, codenamed the "Oka Project," encompasses Toyota's plan to expand its U.S. production scale by adding a new production line.
Currently, Toyota manufactures two pickup models, the Tundra and Sequoia, at its plant in San Antonio, Texas. The facility assembled nearly 200,000 vehicles in 2025 and employs approximately 3,700 workers.
In November of last year, Toyota announced it would invest up to $10 billion in local projects to boost production, in response to Trump's 15% tariff on vehicles and auto parts imported from Japan to the U.S. The plan includes a $912 million investment commitment aimed at increasing hybrid component and vehicle production across five states. The statement noted that plants in West Virginia, Kentucky, Mississippi, Tennessee, and Missouri would add 252 jobs as a result.
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