July 7, 2026 | Toyota’s $3.6B Texas expansion; Teradar CEO on new sensor tech
About this episode
Toyota is committing $3.6 billion to expand its San Antonio truck plant, aiming to double capacity and shift much of Tacoma production from Mexico to the U.S. by 2030—partly to meet demand and partly to blunt tariff pressure. The show also covers Leap Motor’s first North American push via Mexico using Stellantis dealerships, plus Trump pardoning people convicted for altering emissions control devices. Teradar CEO Matthew Carey explains the company’s “Summit” sensor, blending radar weather resilience with LiDAR-like resolution for safer autonomy in fog, rain, and snow.
Toyota’s board approved a $3.6 billion expansion of its San Antonio truck plant, nearly doubling its size and moving most Tacoma production back to the U.S. by 2030. A Chinese EV brand makes its first move in North America through Stellantis. Plus, Teradar CEO Matthew Carey talks about how his company’s new sensor type could change what’s possible for autonomy in bad weather.
emission systems
"President Trump hands out pardons to people who modified their vehicle emission systems."
Emission systems are the parts that help a gas engine reduce harmful exhaust. If someone modifies them, it can mean the car is no longer meeting pollution rules.
Emission systems are the components that control and reduce pollutants from an internal-combustion engine, such as exhaust aftertreatment and related controls. The segment mentions pardons for people who modified these systems, which is typically tied to bypassing emissions controls and can affect air-quality compliance.
San Antonio truck plant
"The automakers board has approved a $3.6 billion expansion of its San Antonio truck plant. The plan is to double its size..."
This is Toyota’s factory in San Antonio, Texas. The episode says Toyota is spending a lot to expand it so it can build more trucks.
The San Antonio truck plant is Toyota’s manufacturing site in the U.S. city of San Antonio, Texas. The segment says Toyota’s board approved a $3.6 billion expansion there to increase capacity and shift production plans.
Baja, California, Mexico
"move most Tacoma production back to the U.S. from Baja, California, Mexico by 2030."
Baja California is a part of Mexico. The episode says Tacoma production is currently there, and Toyota plans to shift most of it back to the U.S.
Baja California is a region in northwestern Mexico that’s frequently referenced in North American manufacturing and logistics. In this segment, it’s the location where Tacoma production is currently based before Toyota plans to move most production back to the U.S.
annual tariff bill
"It also helps chip away at what we at Automotive News found to be an $8.6 billion annual tariff bill that Tacoma has been built exclusively in Mexico since 2021."
A tariff is a tax on imported goods. This phrase means the total yearly amount of money Toyota (or the supply chain) is paying because some Tacomas are built in Mexico and then imported.
An annual tariff bill is the total yearly cost a company pays in import taxes (tariffs) for goods crossing borders. Here, the segment connects Toyota’s production shift to reducing exposure to an $8.6 billion annual tariff cost tied to Tacoma built in Mexico.
Leap Motor B-10 electric crossover
"Chinese EV startup Leap Motor has entered Mexico using Stellantis' local dealership network to distribute its B-10 electric crossover."
The Leap Motor B-10 is an electric SUV/crossover from a Chinese EV company. The story is about getting it into Mexico first, using an existing dealer network to sell it.
The Leap Motor B-10 is an electric crossover model from the Chinese EV brand Leap Motor. The segment highlights its first move into North America via Mexico, using Stellantis’ dealership network to distribute the vehicle.
Stellantis
"Chinese EV startup Leap Motor has entered Mexico using Stellantis' local dealership network to distribute its B-10 electric crossover."
Stellantis is a big car company. Here, it’s helping another EV brand sell cars in Mexico by using Stellantis dealerships.
Stellantis is a major automaker formed from the merger of Fiat Chrysler Automobiles and PSA Group. In this segment, Stellantis is acting as a distribution partner by providing its dealership network for Leap Motor’s entry into Mexico.
Alpina B10
"Chinese EV startup Leap Motor has entered Mexico using Stellantis' local dealership network to distribute its B-10 electric crossover. Stellantis holds a 21% stake in Leap Motor and the partnership is central to how the"
The Alpina B10 is an electric crossover that’s being introduced in Mexico as part of a partnership that uses existing dealership locations. The main point is how the car will be sold and supported in that market.
The Alpina B10 is being discussed in the context of an electric crossover associated with Leap Motor’s expansion into Mexico, using Stellantis’ dealership network. In this situation, the car matters less as a standalone model and more as part of a distribution and partnership strategy—how a new EV brand gets sold through an established dealer system. That’s why it’s likely referenced alongside production and market-access topics.
Toyota Tacoma
"The Tacoma, which is what they're going to move part of the production into the US from Mexico, from a plant in Baja, California to this plant in San Antonio by 2030."
The Toyota Tacoma is a popular pickup truck. Here, the host is saying Toyota wants to build more of them in the U.S. to help avoid extra taxes (tariffs) on imported vehicles.
The Toyota Tacoma is a midsize pickup truck, and it’s being used here as the specific model Toyota plans to shift production for. In this segment, the Tacoma is tied to tariff mitigation—moving some manufacturing from Mexico into the U.S. to reduce the cost impact of import duties.
Toyota RAV4
"There are two very large drivers of that and that's the 25% tariff on vehicles coming out of Canada, specifically the RAV4, their number one seller, and the 25% tariff coming out of Mexico, which is their number three seller, the Toyota Tacoma."
The Toyota RAV4 is a compact SUV and it’s Toyota’s biggest seller mentioned here. The host is saying tariffs on imported cars—like a 25% duty—can affect pricing and production plans for models like the RAV4.
The Toyota RAV4 is a compact SUV and Toyota’s top-selling model referenced in this segment. The host connects it to a 25% tariff on vehicles coming out of Canada, implying Toyota’s production and sourcing decisions may be influenced by where the RAV4 is built.
25% tariff
"There are two very large drivers of that and that's the 25% tariff on vehicles coming out of Canada, specifically the RAV4... and the 25% tariff coming out of Mexico... the Toyota Tacoma."
A 25% tariff is a tax added when vehicles are brought into a country from somewhere else. The host is saying these taxes are a big reason Toyota’s U.S. profits got worse, even though sales were strong.
A 25% tariff is a government-imposed tax on imported vehicles, calculated as a percentage of the vehicle’s value. The host says two separate 25% tariffs are pressuring Toyota’s U.S. results—one on vehicles coming from Canada (notably the RAV4) and one on vehicles coming from Mexico (notably the Tacoma).
tariff mitigation strategy
"So by moving this into the US, the production into the US, at least some of it, it's a tariff mitigation strategy."
A tariff mitigation strategy is how a company tries to avoid extra taxes on imported products. Here, Toyota is shifting production so the cars are made in the U.S., which can lower the tariff hit.
A tariff mitigation strategy is a plan companies use to reduce the financial impact of import duties. In this segment, Toyota is moving production into the U.S. so some vehicles aren’t subject to the same tariff costs when they cross borders.
Ford Maverick
"It may be the place that they build their Maverick fighter. If they convert that plant to a unibody plant from its current body on frame configuration, that's a possibility."
The Maverick is a small pickup truck model. Here, they’re talking about a possibility that a plant in Mexico could be used to build a “Maverick fighter,” meaning a new or different vehicle based on that idea.
The Ford Maverick is a compact pickup known for being relatively affordable and efficient for a truck. In this segment, the host is speculating that Toyota could build a “Maverick fighter” at a specific Mexico plant, which would be a major shift in what that factory produces.
unibody plant
"If they convert that plant to a unibody plant from its current body on frame configuration, that's a possibility."
A unibody design means the car’s body and frame are built as one structure. A “unibody plant” is a factory set up to manufacture that kind of structure, not a separate ladder frame.
A unibody vehicle uses an integrated body-and-frame structure, which can reduce weight and improve packaging. Converting a factory to a “unibody plant” means changing the production process and tooling to build that welded/formed structure instead of assembling a separate frame.
body on frame configuration
"If they convert that plant to a unibody plant from its current body on frame configuration, that's a possibility."
Body-on-frame means the vehicle has a separate “skeleton” frame, and the body is bolted on afterward. It’s often used on trucks because it’s strong for hauling and towing.
Body-on-frame construction uses a separate ladder-like frame, with the body mounted on top. It’s common on trucks and some SUVs because it can handle heavy loads and towing well, but it typically adds weight compared with unibody designs.
build on demand
"They could cycle that in, make that a very efficient plant, basically build on demand, and add a small commercial van on the same platform."
Build on demand means cars are made when there’s real demand, not just in big batches sitting in lots. That can help reduce waste and keep supply closer to what buyers want.
Build on demand is a manufacturing strategy where vehicles are produced based on actual orders or near-real-time demand signals rather than building large inventories in advance. It can reduce storage costs and help manufacturers match production to market demand.
flex manufacturing
"And this, now we've seen Toyota do this flex manufacturing in Georgetown and these vehicles on a similar platform."
Flex manufacturing means the factory can make different kinds of vehicles without shutting down for long. It’s designed to adapt when demand changes.
Flex manufacturing is a production approach where a factory can switch between different vehicle types or variants with minimal downtime. The goal is to respond to changing demand by retooling or reconfiguring processes rather than building only one model forever.
Ford Flex
"...platform. And this, now we've seen Toyota do this flex manufacturing in Georgetown and these vehicles on..."
The Ford Flex is a larger family vehicle with three rows of seats. It’s mentioned because it can be built using flexible factory setups—factories that can switch between different vehicle models.
The Ford Flex is a full-size, three-row crossover/MPV-style vehicle designed to carry passengers and cargo with a boxy, distinctive shape. It comes up in manufacturing discussions because the podcast references “flex manufacturing,” meaning factories that can build different vehicle types on the same production lines. That’s relevant when companies adjust how and where vehicles are produced.
LiDAR
"It's a tech startup developing a sensor that combines LiDAR level resolution with radar's ability to cut through difficult weather."
LiDAR is a sensing method that uses lasers to measure how far away things are. It helps a car “see” in 3D, which is useful for navigation and driver-assistance systems.
LiDAR (Light Detection and Ranging) uses laser pulses to measure distances and build a detailed 3D map of the surroundings. In this segment, the sensor is described as having “LiDAR level resolution,” meaning it aims for high-detail spatial perception.
radar's ability to cut through difficult weather
"It's a tech startup developing a sensor that combines LiDAR level resolution with radar's ability to cut through difficult weather."
Radar is a sensor that uses radio waves. It tends to work better than cameras in bad weather like rain or fog, helping the car keep detecting objects.
Automotive radar can often detect objects reliably in rain, fog, or snow better than some optical sensors because radio waves are less affected by many weather conditions. That’s why radar is frequently paired with other sensors for robust perception.
Terradar
"And I am happy to be together again with the CEO of Terradar, Matthew Carey, ... So last time we chatted at CES, we were unveiling summit, which is our high premium sensor."
Terradar is a company that makes sensors used to help cars “see” the road. The CEO is explaining a new sensor approach and how they’ve been showing it to car makers.
Terradar is a sensor company focused on automotive-grade perception hardware. In this segment, the CEO describes how Terradar’s sensors are intended to work in challenging weather and lighting conditions for vehicle safety.
Matthew Carey
"And I am happy to be together again with the CEO of Terradar, Matthew Carey, ... who we spoke with at CES."
Matthew Carey is the leader of Terradar. In this interview, he talks about the company’s new sensor technology for cars.
Matthew Carey is the CEO of Terradar, the sensor company discussed in this segment. He explains Terradar’s sensor technology and how it’s being evaluated with OEMs (automakers).
CES
"who we spoke with at CES. ... So last time we chatted at CES, we were unveiling summit, which is our high premium sensor."
CES is a big tech show where companies reveal new gadgets and technologies. They’re saying they showed the sensor there before.
CES (Consumer Electronics Show) is a major annual tech trade show where companies unveil new products and technologies. The CEO references CES as the prior venue where Terradar introduced its sensor product.
front fascia
"We can see through the front fascia of a car, but at the same time provide the resolution of a LiDAR."
The front fascia is basically the car’s front body area—things like the bumper and grille. The claim here is that the sensor can still “see” through that front section.
Front fascia refers to the front-end bodywork of a vehicle—bumper area, grille region, and surrounding exterior panels. The speaker’s point is that their sensor can detect through that front structure while still delivering LiDAR-like detail.
OEMs
"So partially due to those meetings at CES, of course, OEMs come in. They see a wonderful demo..."
OEMs are the car companies that make the vehicles. They’re the ones who decide what sensors get used in production cars.
OEMs means Original Equipment Manufacturers—automakers that build the vehicles and specify the sensors used in production. In the segment, OEMs are evaluating the sensor technology after seeing demos.
test tracks
"So why don't we get it onto our own test tracks? ... that's literally where we spend the last four or five months going in Europe onto the test tracks..."
Test tracks are special driving areas used to evaluate car technology. Here, they’re used to check how well the sensor works in realistic conditions.
Test tracks are dedicated facilities where automakers and suppliers evaluate sensors and vehicle systems under controlled conditions. The segment emphasizes that Terradar moved from show-floor demos to real-world track testing to validate performance.
paid development program
"we've already announced for one OEM that they've selected us and we're starting a paid development program, which is a huge deal on the roadmap to a bid"
A paid development program is when a car company pays a tech supplier to work on the technology with them. It’s basically a trial-and-improvement phase before the supplier is chosen for production.
A paid development program is a structured, funded collaboration where a supplier/tech company works with an automaker to test and mature a technology for real vehicle use. It’s often a step toward a future bid or contract because it de-risks integration and performance validation.
internal champion
"You have that internal champion who wants to bring in the technology, but it's not just about the technology."
An internal champion is someone inside the car company who really believes in the technology. They help push it forward so it doesn’t get stuck in internal politics or delays.
An internal champion is a person inside the automaker who actively advocates for a supplier’s technology. Their support helps the idea survive internal reviews and can accelerate adoption by aligning stakeholders around the technology’s benefits.
level three
"And in our case, it's giving these OEMs a sensor that allows them to provide advanced autonomy like level three or advanced safety, not just in nice environments..."
“Level three” means the car can do a lot of the driving for you, but it still needs you to be ready to take over. When the system asks you to, you have to respond.
“Level three” refers to SAE automation level 3, where the car can handle most driving tasks in certain conditions, but the driver must be ready to take over when the system requests it. It’s a step beyond driver-assist, because the vehicle is expected to manage the driving rather than just warn or intervene briefly.
advanced safety
"And in our case, it's giving these OEMs a sensor that allows them to provide advanced autonomy like level three or advanced safety, not just in nice environments..."
“Advanced safety” means the car uses sensors and software to help prevent crashes, not just beep at you. It’s designed to notice danger earlier and respond more intelligently.
“Advanced safety” here means higher-end driver-assistance and automated safety functions that rely on sensing and prediction to reduce crashes. It typically goes beyond basic features like collision warnings by actively detecting hazards and supporting control actions.
redundancy based on different information
"And this is also why Teradar makes sense because you want to get away from just these set kind of visual style wavelengths into something else to provide that level of safety because you want redundancy based on different information, not just the same information over again."
It means the car uses more than one kind of sensor so it doesn’t “lose its eyes” if one gets blocked or confused. Using different sensor types helps the car keep making safe decisions even when conditions are bad.
In advanced driver-assistance systems, redundancy means using multiple sensing inputs so the system can keep working if one sensor degrades. Here, the redundancy is based on different types of information (e.g., radar/lidar vs camera), not repeating the exact same data stream.
camera
"And so pairing a Teradar sensor with say a camera is incredibly powerful because you get that redundant information that in case one falls out due to weather,"
A camera is one of the main sensors on many modern cars. It can help the car detect lanes and objects, but in fog or heavy weather it may not work as well—so pairing it with another sensor helps.
In this context, the camera is part of an automotive perception system that helps the vehicle understand its surroundings. The discussion highlights why cameras alone can struggle in bad weather, and why combining them with another sensor improves safety and autonomy.
Teradar sensor
"And so pairing a Teradar sensor with say a camera is incredibly powerful because you get that redundant information that in case one falls out due to weather,"
Teradar is a sensor system the company makes for cars. The host’s point is that it’s used alongside a camera so the car can “see” better and stay safe when one sensor struggles.
A Teradar sensor is the company’s sensing hardware used for vehicle perception. The key point in the discussion is that it’s paired with a camera to create a more robust sensing stack for safety and autonomy.
autonomy for the vehicles
"you're able to still provide safety and advanced features and autonomy for the vehicles that we're driving in, which is, that's what I want."
Autonomy means the car can do more of the driving on its own. The point is that the car needs sensors that still work in tough weather so it can keep making safe decisions.
“Autonomy” here refers to the vehicle’s ability to make driving decisions and perform driving tasks with limited or no human input. The speaker ties it to having reliable sensor coverage so advanced features can keep working even when conditions like fog reduce sensor performance.
pay development program
"Folks are seeking information. This is part of what the pay development program is. You really, especially as a smaller company, you want to see that to know that this OEM is indeed serious about you"
This sounds like a formal program where a car company tests and works with a supplier to develop a new technology. The speaker is saying it’s a signal of whether the carmaker is serious about using the supplier’s tech.
A “pay development program” is described as a structured OEM (carmaker) evaluation process where suppliers develop and demonstrate technology. The speaker frames it as a way to gauge whether the OEM is genuinely committed, especially for smaller companies.
reference design
"And then we're working with tier ones to produce our sensors. So our reference design for a B sample will be complete later this year."
A reference design is a “starter blueprint” of how the supplier’s technology will be built and connected in a car. It’s used to help the carmaker evaluate whether it can be integrated into production.
A reference design is a baseline hardware/software architecture that a supplier uses to show how their technology will be integrated. The speaker says their reference design for a B sample will be complete later this year, indicating a staged development milestone for OEM evaluation.
B sample
"So our reference design for a B sample will be complete later this year. [861.8s] That's our full B1 sample with our custom ASIC."
A “B sample” is an intermediate prototype version of a part. It’s the kind of build the carmaker can test to see how well it fits and works before the final production version.
A “B sample” is a development prototype stage used in automotive supplier programs, typically following earlier samples (like A samples). It’s meant to be representative enough for OEMs to evaluate integration and performance before production.
custom ASIC
"That's our full B1 sample with our custom ASIC. And then different tier ones over the course of"
An ASIC is a specialized computer chip built for one job. Here, the company is saying their prototype includes a custom chip to handle the sensor’s processing efficiently.
An ASIC (Application-Specific Integrated Circuit) is a chip designed for one specific purpose rather than general computing. The speaker says their B1 sample includes a custom ASIC, implying the sensor’s processing is tailored for the company’s sensing and perception workflow.
OEM traction
"From our point of view, it's all about that OEM traction. So we want to complete that bid later this year."
“OEM traction” is basically how much momentum Terradar has with carmakers. It usually shows up when automakers agree to test the tech and pay for development work.
“OEM traction” means measurable progress getting automakers (OEMs) to adopt or fund a supplier’s technology. In practice, it’s about winning development programs and moving toward production-ready designs.
PCB
"…you don't have to put the antennas on the PCB, the packaging gets easier…"
A PCB is the circuit board inside an electronic device. It’s where components are mounted and wired together, and the speaker says their design changes how antennas are handled.
PCB means “printed circuit board,” the board that physically holds and electrically connects electronic components. The speaker notes that with their chip approach, you don’t have to place the antennas on the PCB, which can simplify packaging and manufacturing.
imaging radar
"…it's actually easier to make once you have those three chips that contain our secret sauce than a standard imaging radar, right?"
Imaging radar is radar that helps the car “see” more detail about what’s around it. Instead of only detecting something nearby, it can build a more detailed view.
Imaging radar is a radar system designed to create a “picture” of the environment rather than just detecting presence. The segment contrasts a specialized chip-based approach against a more standard imaging-radar setup.
NVIDIA ORIN
"Right now, we consume, you know, we use that NVIDIA ORIN in order to do the processing."
NVIDIA ORIN is a computer used in cars to process sensor information. The CEO says they’re using it now, but they want a more purpose-built setup for what they’re building.
NVIDIA ORIN is NVIDIA’s automotive compute platform used for processing sensor data in vehicles. The speaker says they currently use ORIN to do the processing, but it’s not ideal for their end goal compared with their upcoming “B one sample” approach.
Matt Carey
"For Matt Carey, CEO of Terradar, this is Doug Bolduc with Automotive News."
Matt Carey is the CEO of Terradar. He’s explaining what his company wants to accomplish this year with carmaker development projects.
Matt Carey is identified here as the CEO of Terradar. In this segment, he outlines the company’s 2026 goals around OEM programs and sensor/radar production maturity.
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