Toyota has told the Baja California state government it plans to move Tacoma pickup truck production from its plant in the state to San Antonio, Texas, over the next four years. Kurt Honold Morales, the state’s Secretary of Economy and Innovation, confirmed receiving the notification on July 5, 2026. The decision lands at a painful moment for Baja California’s manufacturing sector, which has already lost thousands of jobs this year.
Toyota Tacoma Baja California Plant Has Anchored Regional Manufacturing for Years
Toyota’s Tecate plant, located roughly 30 miles east of Tijuana, began producing the Tacoma in 2004. The facility was part of a broader wave of Japanese automakers establishing operations along Baja California’s border corridor to take advantage of lower labor costs while staying close to the U.S. market. Over two decades, the plant grew into one of the state’s most prominent maquiladora operations, employing thousands of workers directly and supporting a network of parts suppliers, logistics companies, and service providers across the region.
The Tacoma itself has been one of Toyota’s best-selling vehicles in the United States, consistently ranking as the top-selling midsize pickup. The truck’s Baja California production line has fed that demand since the mid-2000s, with finished vehicles crossing the border at the Tecate port of entry for distribution across North America. Toyota also manufactures the Tacoma at its San Antonio plant, which opened in 2006. The Texas facility already produces both the Tacoma and the full-size Tundra.
The decision to consolidate Tacoma production in San Antonio aligns with a broader trend among automakers responding to U.S. trade policy. Since 2025, the U.S. government has imposed escalating tariffs on vehicles and auto parts imported from Mexico. President Trump’s tariff regime placed a 25% duty on imported vehicles, with additional levies on components that do not meet revised rules-of-origin thresholds under the renegotiated USMCA framework. For Toyota, moving production stateside eliminates those tariff costs on every Tacoma sold in the American market.
The four-year timeline Toyota cited suggests a phased transition rather than a sudden shutdown. Retooling the San Antonio plant to absorb the full Tacoma production volume will require significant capital investment, new assembly lines, and workforce expansion in Texas. Toyota has not publicly disclosed how many Baja California jobs the move will affect, but the plant’s workforce has been estimated at several thousand direct employees in previous reporting.
Baja California’s Maquiladora Sector Has Shed Over 20,000 Jobs Since Early 2026
Toyota’s announcement compounds what has already been a difficult year for Baja California’s manufacturing economy. Between January and June 2026, the state’s maquiladora sector lost more than 20,000 jobs, according to data from IMSS (Mexico’s social security institute, which tracks formal employment). Tijuana, Mexicali, and Tecate have all seen factory closures or workforce reductions tied to tariff uncertainty and shifting supply chain strategies.
The automotive sector has been hit especially hard. Parts suppliers that feed assembly plants on both sides of the border have cut shifts or paused hiring. Several smaller maquiladoras that produce wiring harnesses, plastic components, and metal stampings for the auto industry have reduced their payrolls since the tariff escalation began. Each direct manufacturing job in the maquiladora sector supports an estimated two to three indirect jobs in transportation, food services, housing, and retail, so the ripple effects extend well beyond the factory floor.
For the Tecate municipality specifically, Toyota’s plant is among the largest single employers. The city of roughly 110,000 people does not have the diversified economy of Tijuana. A gradual drawdown of Toyota operations over four years could strain local government revenues, reduce demand for housing, and push workers to relocate to Tijuana or across the border in search of employment.
Honold Morales Said the State Will Seek to Retain Other Toyota Operations
Secretary Honold Morales acknowledged the notification but indicated the state government would work to retain whatever Toyota operations might remain in Baja California after the Tacoma line departs. Toyota’s Tecate facility has at times produced components or subassemblies beyond finished trucks, though the company has not confirmed whether any such operations would continue past the transition period.
The state’s leverage is limited. Baja California can offer tax incentives, workforce training programs, and infrastructure improvements, but those tools are modest compared to the tariff savings Toyota gains by producing in Texas. The San Antonio plant already benefits from state and local tax abatements that Texas extended when the facility was first built. Governor Greg Abbott has publicly courted manufacturers leaving Mexico, framing Texas as the natural destination for reshored production.
If you live in Tecate or employ workers in the border manufacturing corridor, the four-year window matters. It is long enough for retraining programs and alternative employer recruitment, but only if state and municipal governments act quickly. Baja California’s economy ministry has not yet announced a specific plan for affected workers.
Toyota’s next public update on the transition timeline is expected later this year. The original report was published by Zeta Tijuana on July 6, 2026.