Long-term competitiveness is Toyota's goal.
Toyota takes its trucks very seriously, and its reputation for building robust and reliable trucks over the decades has paid off well. Toyota's plan right now is to invest $13 billion into its US operations through 2021, and part of that involves investing $391 million in its San Antonio assembly plant in Texas to improve the site's manufacturing of Tundra and Tacoma pickup trucks with technological advancements. "We've been in the US for more than 60 years, creating a tremendous value chain in this country and creating an extensive footprint in the Alamo City since 2003," said Toyota executive Chris Reynolds in a statement.
It looks like Toyota and San Antonio have both got themselves a win-win in the deal. Toyota gains a $9.7 million incentive package from the city that includes a 100% tax abatement on new property taxes through 2027 and more than $600,000 in water infrastructure improvements. In return, the San Antonio Economic Development Foundation has estimated the total economic impact of the investment from Toyota could be in excess of $10 billion while creating over 40,000 new jobs through the next decade. San Antonio Mayor Ron Nirenberg called the investment a "huge win" for the city.
Toyota's investments in the San Antonio truck plant since 2003 is now in excess of $3 billion. There are no new jobs initially linked to the investment, but there's good news for the San Antonio suburb of Cibolo as well. One of Toyota's suppliers in Texas, Aisin AW, is now set to invest $400 million there and create 400 new jobs in the process.
This strengthens Toyota's footprint in the US even more. "With 10 US plants, 1,500-strong dealer network, an extensive supply chain and other operations, we, directly and indirectly, employ over 475,000 Americans and are committed to investing here," Chris Reynolds, Toyota Motor North America's chief administrative officer of manufacturing and corporate resources, observed.