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Toyota delays U.S. Prius production plans

11/14/2008, 11:17 AM

By Drew Johnson

On the heels of slumping SUV demand, Toyota decided to shift production of its next-generation Highlander to the company’s idle Princeton, Indian plant. That move cleared room at Toyota’s Tupelo, Mississippi plant to produce the fuel-efficient Prius – allowing for the Prius to be built in the U.S. for the first time– but tough economic times may be even putting that plan on hold.

According to Japan’s Nikkei, Toyota has put its U.S. Prius production plans on hold. The most popular hybrid in the world was slated to begin production in Mississippi in 2010, but those plans have now been pushed back to 2011 at the earliest.

The decision to delay Prius production at the Tupelo plant came down from a recently formed task force – charged with keeping Toyota’s finances in the black – headed by Toyota President Katsuaki Watanabe. Although the decision to delay domestic Prius production will save Toyota some money, it’s a grim sign that even plans for the poster child of fuel economy can be put on the back burner during these tough times.

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11/14, 12:07 PM

posted by:

Z06ified

Because the dollar is strengthening again. The only reason the Japanese build cars here is because it’s been cheaper for them to do so – not from the goodness of their hearts to employ Americans.

11/14, 12:31 PM

posted by:

Madcapp

Dorks of the world cry in your non-alcoholic beers.

11/14, 12:44 PM

posted by:

beatusmongous

Good. I don’t want to see another article in People Magazine discussing the new “green rides” of the players in Hollywood.

11/14, 1:13 PM

posted by:

HoosierHero

z06- isn’t that the reason why anyone does anything?? Why do you think we’ve been exporting our manufacturing to China for decades?? Quit crying for Americans- they can always learn a new, more high-tech skill and still be competitive. Manufacturing has been slowly dying out for ages.

11/14, 1:44 PM

posted by:

beemerdude

…tough economic times MAY BE EVEN PUTTING that plan on hold.

Hey, LLN.. When are you going to get writers who don’t make CONSISTENT ERRORS IN GRAMMAR??

11/14, 3:04 PM

posted by:

Lariat Luxury Locomotive Liner No.3

Actually, there’s a lot more to this story. Z06ified, yes, money is at the heart of the matter, but there are other factors at work, mainly political reasons that stem foreign corporations to have plants on US soil.

11/14, 3:07 PM

posted by:

elviososa

First Toyota make the mistake for building ugly cars, now Toyota is making another mistake to delay the the product like GM dose.

11/14, 6:08 PM

posted by:

Kaizen

The product isn’t being delayed. The new plant producing the product is being delayed.

11/14, 7:36 PM

posted by:

PW

Who is business does anything from the goodness of their hearts, Z06ified? Don’t rat on the Japanese; everyone does the same thing, even (and even more so, I would add) the company that makes your Z06.

LLLL3, you’re right, political reasons are part of the matter as well. Why do you think Toyota joined NASCAR? They want to be thought of as an American company.

 
 
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