Early in January 2022, Toyota announced that it will be cutting production at its San Antonio plant by up to 50%. This came as a bit of surprise given that the San Antonio Plant is one of the most technologically advanced and flexible automotive manufacturing facilities in the world. The automaker said that the move is in response to the COVID pandemic.
Even so, the plant isn't anticipating any layoffs and is instead offering voluntary separations. The San Antonio plant is Toyota's first U.S. manufacturing facility outside the state of Kentucky, and it's also the automaker's first truck plant in North America.
But, even with the production cuts, Toyota Motor Manufacturing Texas (TMMTX) plant still remains an important part of the automaker's North American operations. It is the only place where the Toyota Tacoma and Tundra are assembled. The San Antonio plant is also a key cog in Toyota's North American supply chain.
Here's a look at the plant and what it produces.
What Does Toyota Build In The San Antonio Plant?
Located just outside of San Antonio, Texas, the 2.2 million-square-foot facility began production in 2006. The plant is home to a number of Toyota's most popular vehicles and produces an average of 208,000 units annually.
Here's a breakdown of the vehicles that San Antonio plant produces:
Toyota Tacoma: The Tacoma is Toyota's best-selling vehicle in North America, and it is assembled exclusively at the San Antonio plant. The midsize pickup truck was completely redesigned for the 2016 model year, and it continues to be a big seller for Toyota.
Toyota Tundra: The Tundra is Toyota's full-size truck. It, too, is assembled exclusively at the San Antonio plant. The Tundra was last redesigned for the 2014 model year, and it remains a key part of Toyota's truck lineup. TMMTX produces around 750 tundras a day.
Toyota Highlander: The Highlander is a large SUV that seats up to eight passengers. It is assembled at the San Antonio plant, as well as at Toyota's plants in Princeton, Indiana and Fukuoka, Japan.
Toyota Sienna: The Sienna is Toyota's minivan. It, too, is assembled at the San Antonio plant as well as at Toyota's plant in Princeton, Indiana.
Toyota Sequoia: The Sequoia is Toyota's largest SUV. It's the newest Toyota model to be assembled at the San Antonio plant, starting production in late 2016.
How Much Do Toyota Plant Workers Make In San Antonio?
TMMTX has a total of 3,200 full-time employees as of May 2022. The average hourly pay for an Assembly Line Worker at Toyota Motor Manufacturing Texas, Inc. was $14.85. This translates to a weekly pay of $594, a monthly salary of $2,574 and an annual salary of $33,060.
This is slightly below the average yearly salary for all assembly line workers in the United States, which was $35,790 as of May 2022.
In comparison, the average pay for all workers at Toyota's Georgetown, Kentucky plant was $24.75 per hour while the Princeton, Indiana plant had an average hourly pay of $23.50 as of September 2017.
The slightly lower pay at the San Antonio plant may likely be because Texas is a right-to-work state. This means that workers can't be required to join a union as part of their employment. Texas is one of 28 states with this law. Also, the cost of living in Texas is lower than in some other states.
To make up for the lower starting wage, Toyota offers its San Antonio plant workers a production bonus. The bonus is based on how many vehicles the workers produce and can amount to several hundred dollars each week.
What Has Been Toyota's Impact On The San Antonio Economy?
Since beginning production in 2006, the Toyota San Antonio plant has had a $2.7 billion economic impact on the city of San Antonio and Bexar County, according to a study done by the University of Texas at San Antonio's Institute for Economic Development. This includes the creation of 16,500 direct and indirect jobs.
The plant has also been a boon to the local suppliers. There are now more than 30 suppliers located near the plant, providing parts and materials to TMMTX. This is up from just six suppliers when the plant first opened.
The Toyota San Antonio plant has also helped to attract other Japanese companies to the city. More than 20 Japanese companies have located facilities in San Antonio since Toyota announced its plans to build the plant.
These companies have brought an additional $2.7 billion in investment to the city and created thousands of jobs.
While production is being cut back in the short-term, Toyota remains committed to the San Antonio plant and the city of San Antonio. The company plans to eventually increase production at the plant once demand for its vehicles improves. For now, the plant will continue to build the Toyota Tacoma, Tundra, and Sienna.