Published: Mon, January 20, 2020
Markets | By Otis Pena

Toyota moving pickup production to Mexico, no USA jobs lost

Toyota moving pickup production to Mexico, no USA jobs lost

Toyota has been building Tacoma trucks at its Baja California plant in Mexico since 2004.

That said, the company cleared that the production realignment won't affect any direct jobs at its plants in IN and Texas.

The largest Japanese automaker also said it will end production of the Toyota Sequoia in IN by 2022 as that facility focuses on mid-size SUVs and minivans.

The carmaker plans to start moving the assembling of the Sequoia SUV to San Antonio in the next two years.

Toyota Motor Corp said on Friday it will move production of its mid-size Tacoma pick-up truck from the United States to Mexico as it adjusts production around North America.

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At a celebration in Princeton this afternoon, Toyota Indiana committed $1 million to a new, regional workforce program that will connect students with career opportunities in advanced manufacturing while still in high school. However, the decision to move Tacoma's production to Mexico may also make Toyota vulnerable to political heat. Toyota will shift production of the Sequoia in 2022 to Texas and that plant will end production of the Tacoma by late 2021.

The announcement came a day after the US Senate approved the new US-Mexico trade agreement, which significantly renews the rules for the construction and cross-border trade of cars.

The company has already invested $7.1 billion, including $1.6 billion at an Alabama auto plant it shares with fellow Japanese automaker Mazda. The company's Guanajuato facility started building the model this past December. "Our $1.3 billion investment at TMMI is further proof that our Hoosier workforce is rededicated to producing safer, high-quality vehicles our customers love to drive". The Highlander accounted for 73 per cent of the total, trailed by Sienna's 24 per cent and Sequoia's 2.5 per cent.

Capacity in San Antonio will remain at 208,000 vehicles a year and no jobs will be cut, the company said. A Toyota spokesman declined to train on any future production plans for the Texas plant. To date, Toyota has committed approximately $7.1 billion of the announced total; cumulative direct investment in the US exceeds $28.4 billion.

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