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.
