Toyota this morning announced it will produce the next-generation Prius hybrid in the United States, in order to address “changes in consumer demand” and improve the “stability of its North American operations.” The automaker will also shift the production location of its Highlander mid-size SUV, and consolidate Tundra production to one plant, as previously rumored.
Many automakers have recently considered U.S. production to combat the effects of instability in the U.S. dollar. By producing cars in America, a manufacturer knows exactly what its costs will be relative to revenue generated in said market.
As rumored in April, production of the Tundra full-size pickup truck, currently built in Indiana and Texas, will be consolidated at the San Antonio plant in Spring 2009. The move follows the recent layoff of temporary Tundra workers and decreased output.
The Highlander, originally scheduled to be built in Mississippi, will now be manufactured at the Indiana plant, beginning in Fall 2009. The move should help reduce job losses and ensure the future of the plant in light of the Tundra suspension.
“The truck market continues to worsen, so unfortunately we must temporarily suspend production. But this good news about production mix demonstrates our long-term commitment to our North American operations and to our team members, supplier partners, and communities where our plants are located,” said Jim Wiseman, vice president/external affairs for Toyota Motor Engineering & Manufacturing North America (TEMA).
“By using this downturn as an opportunity to develop team members and improve our operations, we hope to emerge even stronger.”
