Toyota to Build Prius in U.S.

Toyota announced today it would begin building its popular hybrid Prius sedan in a new assembly plant in Mississippi. The plant is under construction, and production of the Prius there won’t start until late 2010. The next-generation Prius should go on sale sometime in 2009 and will initially be built in Japan. 

Toyota also announced some production moves due to the weak market for trucks and SUVs. Starting in August, Toyota will stop production of the new Tundra pickup and Sequoia full-size SUV at both its Indiana and Texas plants, but production in those spots will resume in November. Starting in the spring of 2009, the Tundra will only be built in Texas. 

Toyota’s Indiana plant will make up for the loss of the Tundra by producing the Highlander three-row crossover beginning in the fall of 2009. The Highlander was originally intended to be built in the new Mississippi plant that the Prius is now taking over.

The moves mean Toyota is not immune to the current shift in consumer demand. The company says its workers will be provided work during the hiatus.