Toyota has started construction of a $531 million rear axle production plant at its South Side facility, bringing in-house the production of drivetrain components for Sequoia SUVs and Tundra pickups built in San Antonio. Toyota will also ship the assemblies to Mexico for its Tacoma truck line.
“Our new plant will export sixty percent of its products to our facilities in Baja California and Guanajuato,” said TMMTX President Susann Kazunas.
Toyota will move work from a Midwest supplier to San Antonio, according to Toyota Motor Manufacturing Texas President Susann Kazunas.
“For me, this new plant demonstrates our team’s capability,” she said Wednesday, suggesting possible future expansion.
Toyota Motor Manufacturing Texas Inc. broke ground 21 years ago, and now the facility is undergoing a $531 million expansion to boost its operational capabilities.
The axle factory is set to add, over 400 positions to its workforce and bring the number of employees at the plant to more, than 4,000 individuals The company plans to equip the new 500,000 square foot facility with five production lines and 200 welding robots to manufacture 18 different types of rear axles.
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When will production at the factory begin?
The Japanese car maker says it will start making axle assemblies at the end of next year. Targeted to make 500,000 units a year when at full capacity by first quarter of 2027. Toyota is already recruiting for skilled maintenance positions. Onboarding for production personnel is expected to begin in late 2025 and continue through 2026.
Toyota expects the new axle assembly unit to streamline production, improve quality control, reduce lead time, and lower costs.
“Some might think San Antonio lacks manufacturing history in the United States,” Kazunas said. “Some might expect workforce hiring challenges, but I disagree. We have an excellent plan and all the necessary talent here.”
Key note: Toyota considered other markets for the new rear axle plant.
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Texas-Mexico Automotive Supercluster
Bexar County Commissioners last year approved an initiative to develop a Texas-Mexico Automotive Supercluster to compete with other major automotive manufacturing regions.
Currently, TMMXT now covers 2.2 million square feet. Toyota has invested $4.2 billion in the plant to date.
Toyota Rear Axle Production Plant Project Factsheet
Project Overview
Project: New Rear Axle Production Plant
Location: Toyota Motor Manufacturing Texas (TMMTX), South Side, San Antonio
Total Investment: $531 million
Parent Company: Toyota Motor Corporation
The New Plant Specifications
Size: 500,000 square feet
Production Lines: 5
Welding Robots: 200
Product Variations: 18 different rear axle types
Production Capacity: 500,000 units annually (at full capacity)
Employment Impact
New Jobs Created: 400+
Total Plant Employment After Expansion: 4,000+
Construction timeline for the new rear axle production plant
Construction Start: 2024
Production Start: Late 2026
Full Production Capacity: Spring 2027
Production & Distribution
Primary Products: Rear axle assemblies for:
Toyota Sequoia SUVs
Toyota Tundra pickups
And Toyota Tacoma trucks
Distribution:
40% for San Antonio plant use
60% export to Mexico (Baja California and Guanajuato facilities)
Technical Capabilities
In-house production of drivetrain components
Quality control improvements
Streamlined production processes
Reduced lead times
Cost optimization
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The new rear axle production plant in San Antonio
Campus Size: 2,000 acres
Current TMMTX Facility: 2.2 million square feet
Total Toyota Investment in TMMTX to date: $4.2 billion
Strategic Significance
Brings previously outsourced production in-house
Strengthens Texas-Mexico automotive corridor
Enhances San Antonio’s manufacturing capabilities
Creates potential for future expansion
Supports Texas-Mexico Automotive Supercluster initiative
Supply Chain Impact
Relocates production from Midwest supplier
Establishes new role in Toyota’s North American supply chain
Improves vertical integration
Enhances cross-border manufacturing coordination
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