Toyota delays Mississippi Prius plant indefinitely
— -- Toyota said Monday that it would delay production at its Blue Springs, Miss., plant, where it plans to build the Prius hybrid, "due to the steep decline in the market."
Toyota said it intends to finish building the plant, now 90% complete, but will put installation of equipment on hold.
"This likely means that start of production will be delayed," Toyota said in a statement. "Due to the uncertainty of the market, it is impossible to say at this time when production will begin."
Amid the global sales decline, Toyota cut its profit forecast for this fiscal year through March to about $6 billion, about two-thirds less than last year. To boost profits, it has said that delays in new factory launches and cuts in production and research-and-development spending are being considered. It has cut production at several existing North American plants in recent months.
Initially, Toyota planned to build its Highlander SUV at the Mississippi plant. But in July, as gas and oil prices hit historic highs, Toyota announced major changes to its North American production plans.
Toyota said it would instead assemble the Highlander in Princeton, Ind., and build the Prius, the world's best-selling hybrid vehicle, in the United States for the first time beginning in 2010 in Blue Springs.
November sales of the Prius dropped 48.3% in the USA compared with November 2007.
"We are committed to completing the Mississippi plant when market conditions allow," said Lacy Luckett, a spokeswoman for Toyota Motor Manufacturing Mississippi.
The $1.3 billion plant was expected to bring about 4,000 jobs, including those at suppliers. Toyota has invested $300 million in the project, Luckett said. She said the company does not have a new time for when the plant will open.
Suppliers were notified of the decision on Monday, said Barbara McDaniel, spokeswoman for Toyota Motor Engineering and Manufacturing North America. At least six suppliers had announced plans to locate in Mississippi.
The plant's delay will not stall production of the redesigned, next-generation Prius. The 2010 model will make its debut next month at the auto show in Detroit, and sales of the new model are scheduled to begin in spring.
