Japanese automaker Toyota announced on Tuesday that it planned to invest hundreds of thousands of dollars in a truck assembly plant in San Antonio, Texas, part of its ongoing plan to pump money into its U.S. operations.
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“Our $391 million investment here in San Antonio is just the next step in a long line – and we do make about 70 percent of what we sell here,” Christopher Reynolds, head of Toyota’s North America Manufacturing said during an exclusive interview on FOX Business’ Cavuto: Coast to Coast on Tuesday.
Reynolds noted that the company has invested more than $27 billion in the U.S. since the late-1960s. It has plans to invest $13 billion in the country in the five years through 2021.
Toyota Tacomas and Tundras are assembled at the plant, which opened in 2003. It employs more than 3,200 workers.
Reynolds said Toyota is “doubling down” in Texas thanks to a “favorable business environment,” which is likely enhanced by the state’s low taxes. The company said in a press release that the investment was also driven by strong consumer demand.
The investment was not motivated, however, by ongoing trade tensions between the U.S. and a number of other countries – including Japan.
“We always intended to sell what we build here, that was before this recent round of trade tensions and it’ll continue afterwards,” Reynolds said.
President Trump said on Monday that an initial trade agreement with Japan had been reached – though there was no mention as to whether vehicle imports would be subject to tariffs.
Toyota’s announcement comes as fellow automaker, General Motors, is dealing with an employee strike that is disrupting operations.