Toyota Texas could make another $2 billion investment in San Antonio.
In a filing with the State Comptroller’s Office, Toyota officials said they were considering a new vehicle assembly line near its existing facility in San Antonio.
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Codenamed Project Orca, filings show construction would take place between 2026 and 2030 and cost around $2 billion.
The new assembly line would generate 2,000 jobs, with 320 workers hired in 2028, 1,440 hired in 2029 and 240 hired in 2030.
Toyota’s filing said the new assembly line would need to be close to an existing Toyota facility. There are other candidate sites, but the company said those negotiations are confidential. Toyota officials did not comment on one specific site when reached for comment.
“Our production philosophy is to build where we sell and buy where we build. We regularly evaluate our manufacturing footprint to ensure we remain competitive and aligned with customer demand. This reflects our long-term commitment of investing in the North American region, local manufacturing/jobs, and suppliers. We have nothing further to announce at this time,” said a statement from a company spokesperson.
In March, Toyota officials said tariffs had not had a huge impact on production, but they were eyeing the upcoming renegotiation of the United States-Mexico-Canada Agreement that governs trade between those three countries.
The proposed assembly line would be in addition to a different $531 million investment — Toyota is building a new rear axle facility that will generate around 400 jobs.
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That 500,000 square-foot facility is scheduled to open later this year and ramp up production in 2027.
Toyota is applying for a 10-year tax incentive package through the state’s Jobs, Energy, Technology and Innovation Act. The law requires an agreement from state, school district and company officials to limit tax valuations for the maintenance and operations (M&O) tax if an employer meets certain requirements.
In Bexar County, Toyota would need to invest more than $200 million and create more than 75 jobs, two thresholds the proposal easily passes.
Toyota’s facility is in Southwest Independent School District. Officials from the school district did not comment on the proposal as of publication time. In a report Toyota filed with the comptroller, that 10-year incentive period would run between 2030 and 2040.
M&O taxes would be 25% of their full value for that period. The report submitted by Toyota shows those taxes rising between 2030 and 2035 due to machinery and equipment on-site and then stabilizing at $645,019 annually until 2040, when they would be more than $2.5 million each year after the incentive period ends.
