- The huge investment comes despite threats from Donald Trump to hit Mexican-built vehicles with hefty new tariffs.
- Many of the trucks that Toyota builds in Mexico are sold in the US and Canada.
- Trump says vehicles made in Mexico could be hit with a 200% tariff or more.
Toyota is planning a $1.45 billion investment to upgrade its manufacturing plants in Baja California and Guanajuato, Mexico, in preparation for producing the Tacoma and Tacoma Hybrid. However, the timing of this announcement is complicated by Donald Trump’s recent re-election in the United States, casting uncertainty over cross-border trade policies and Toyota’s long-term strategy in the North American market.
According to Toyota, the investment will create 1,600 new jobs across the two Mexican plants, while bolstering the company’s operations in the region. By modernizing the two facilities, Toyota will be able to incorporate more sustainable production technologies, reduce CO2 emissions, and optimize resource consumption.
Read: Toyota’s 2024 Tacoma Transmission Fix Didn’t Stop A Class Action Lawsuit
The Baja California plant has been operational since 2004, while the Guanajuato site, a more recent addition, began production in 2019. In addition to building trucks for the local market, vehicles manufactured in Mexico are also sold in the United States and Canada.
“At Toyota, we believe in Mexico and in the importance of investments for the economic, environmental and social development of the country. With this announcement, Toyota has achieved an investment of more than 3 billion dollars in Mexico, a country that is essential for the regional competitiveness of North America,” said Luis Lozano, president of Toyota Motor de México.
He also stressed that “certainty and stability” are crucial for the automotive industry to remain a driving force for “national development, generating more and better jobs, developing talent and moving in an orderly manner towards electrification and new mobility challenges”.
The announcement comes just days after Donald Trump secured a second term as U.S. president. During his campaign, Trump proposed imposing tariffs of 200% or more on Mexico-built vehicles. His argument is that such tariffs would force companies to shift manufacturing back to the United States. However, many economists have criticized the plan, warning that it could lead to higher consumer prices without significantly boosting domestic production. Trump, however, has shown a tendency to prioritize his own perspective over outside advice.
The 2024 Tacoma Hybrid is powered by a 2.4-liter four-cylinder with 278 hp and 317 lb-ft (430 Nm) of torque and mated to an eight-speed automatic transmission. An electric motor with 48 hp and 184 lb-ft (249 Nm) of torque is sandwiched between the engine and gearbox, while a 1.4 kWh battery pack is located under the rear seat. All up, it delivers 326 hp and 465 lb-ft (630 km) of torque.
