Toyota Invests $1.45 Billion to Develop Tacoma Production in Mexico

Toyota is actively positioning itself by injecting $1.45 billion into its factories in Baja California and Guanajuato, Mexico, to drive the production of Tacoma and Tacoma Hybrid models. However, the timing of this announcement has become complicated due to Donald Trump’s recent re-election in the United States, undoubtedly casting uncertainty on cross-border trade policies and Toyota’s long-term strategy in the North American market.

According to Toyota, this investment will create 1,600 new jobs in the two Mexican plants, enhancing the company’s operational capabilities in the region. Through the upgrades to both facilities, Toyota will be able to integrate more sustainable production technologies, reduce carbon emissions, and improve resource efficiency.

The Baja California plant has been operational since 2004, while the newer Guanajuato plant started production in 2019. In addition to building trucks for the local market, the vehicles manufactured in Mexico are also exported to the United States and Canada.

Louis Lozano, President of Toyota Motor de Mexico, stated, “At Toyota, we believe in Mexico and the importance of investments for the economic, environmental, and social development of the country.” He added, “With this announcement, Toyota has invested over $3 billion in Mexico, a country essential for North America’s regional competitiveness.”

He also emphasized that “certainty and stability” are critical for the automotive industry to remain a driving force for “national development, generating more and better jobs, developing talent, and moving systematically toward electric vehicles and new mobility challenges.”

This investment announcement comes just days after Trump was re-elected as President of the United States. During his campaign, Trump proposed imposing tariffs of 200% or more on vehicles manufactured in Mexico, arguing that such tariffs would force companies to bring manufacturing back to the U.S. However, many economists criticized the plan, warning it could lead to higher consumer prices without significantly boosting domestic production. Nonetheless, Trump has shown a tendency to prioritize his own views over external advice.

The 2024 Tacoma Hybrid operates with a 2.4-liter four-cylinder engine producing 278 horsepower and 430 Nm of torque, paired with an 8-speed automatic transmission. There is also a 48-horsepower electric motor generating 249 Nm of torque between the engine and the gearbox, while a 1.4 kWh battery is located under the rear seat. Overall, it delivers 326 horsepower and 630 Nm of torque.