P&A Providers & Administrators
MenuMENU
SearchSEARCH

Toyota Starts Production of Tacoma in Texas

August 7, 2010
3 min to read


SAN ANTONIO, Texas - Toyota Motor Corp. managers are renowned for collecting reams of data to predict market trends, but the Japanese automaker's truck plant stands here as a symbol of one time when Toyota got it wrong, The Detroit News reported.


Its full-size Tundra pickup never sold as well as Toyota expected four years ago, when it opened the assembly plant dedicated solely to Tundra production.

Ad Loading...


But after the devastating industry downturn of 2008 and 2009, Toyota decided to build a smaller truck here as well, its Tacoma, and the company marked the start of its production here Friday.


Proclaiming "It's Tacoma Day in Texas," Gov. Rick Perry joined local officials, senior Toyota executives and plant workers at the factory for a brief but lively midmorning celebration.


Toyota has hired 1,000 new workers and invested $100 million to produce Tacomas on the same line as Tundras, bringing the total investment in the plant to $1.4 billion.


The factory now employs 2,800 "team members," as the workers are called, including the original hires who were retained even when Toyota halted production in San Antonio for three months in late 2008.


Toyota stopped making the Tacoma and other vehicles in Fremont, Calif., after General Motors, its partner in New United Motor Manufacturing Inc., quit the venture as part of its bankruptcy in 2009.

Ad Loading...


Toyota said last August that it would transfer Tacoma production to the Texas plant, which was running well below its production capacity. Output of Tacomas in Texas began a month ago.


By making the Tundra and Tacoma on the same line, Toyota will be able to respond better and faster to the market's demands, said Jim Lentz, president of Toyota Motor Sales, the U.S. sales subsidiary based in Torrance, Calif.


When gas prices spiked in 2008, demand for thirsty full-size trucks plunged, while demand for midsize, more affordable trucks held up better, he said.


Toyota's Tacoma starts at just over $16,000; the Tundra starts above $23,000 and the largest, most powerful versions cost more than $40,000.


But demand for full-size pickups is starting to rebound. GM and Ford Motor Co., the dominant players in this segment, are reporting strengthening demand for their big pickups.

Ad Loading...


"We're seeing a slight increase in construction and in demand from municipalities and small businesses, and that's helping to rebuild this segment," said Rebecca Lindland, an analyst at IHS Automotive in Lexington, Mass.


Sales of Toyota's Tundra are up 20 percent this year, while Tacoma sales are flat, Lentz said.


Referring to industrywide sales of full-size pickups, he said, "I don't think they'll be back to the 2 million mark, but maybe to 1.6 million, 1.8 million."


For the year, Lentz predicted Toyota will sell about 205,000 pickups in the United States: 100,000 Tundras and 105,000 Tacomas.


Toyota also produces 50,000 Tacomas in a plant on the outskirts of Tijuana, Mexico.

More Industry

Photo of the back of an electric Mercedes
Industryby Hannah MitchellJune 10, 2026

Auto Prices Ride May Moderation

Flat ATPs and asking prices clocked in below long-term averages for the month, though some segments saw significant price gains, reported Cox Automotive.

Read More →
Photo of white Toyota car in front of dealership
Industryby Hannah MitchellJune 9, 2026

Auto Retail Families Get Out While the Getting’s Good

Kerrigan Advisors’ first-quarter Blue Sky Report shows a sharp uptick in buy-sell deals as more retailers take advantage of handsome values while seeking to escape market risk.

Read More →
daytime, front of car dealership Lexus of Vancouver
Industryby Lauren LawrenceJune 3, 2026

Holman Opens New Lexus Dealership

Located in the heart of Clark County, Lexus of Vancouver features a multi-level showroom, more than 30 service bays, an indoor drive for drop-off and pick-up and a fleet of courtesy vehicles.

Read More →
Ad Loading...
Subwoofer in trunk of car.
Industryby Lauren LawrenceMay 26, 2026

Ownership Priorities are Shifting

A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.

Read More →
Man's hand holding gas pump in fuel tank of white car
Industryby Hannah MitchellMay 26, 2026

Pump Price Jump Calculated

ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.

Read More →
Graphic showing previous week's truck and SUV segment prices
Industryby StaffMay 20, 2026

Black Book: Weekly Market Update

Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.

Read More →
Ad Loading...
Photo of dealership sign with Toyota logo
Industryby Lauren LawrenceMay 19, 2026

Arkansas Auto Group Acquires First Indiana Rooftop

Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.

Read More →
Headshot photo of Antonio Filosa, Stellantis CEO
Industryby Hannah MitchellMay 19, 2026

Stellantis to Dive Into U.S. Lending

The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.

Read More →
Photo of the rear of a new BMW iX SUV
Industryby Hannah MitchellMay 12, 2026

New-Vehicle Prices Rise

With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.

Read More →
Ad Loading...
Graphic of car segments' results the previous week
Industryby StaffMay 12, 2026

Black Book: Weekly Market Update

Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.

Read More →