Toyota to Build Prius First Time In U.S.
In a response to slumping sales, high gas prices and increasing consumer demand for hybrid vehicles, like most of the U.S. motor companies, Toyota Motor Corp. plans to make some changes in its production line. The Japanese company will scramble its manufacturing plans to fewer light trucks and more hybrid cars in the United States.
Toyota announced that it will build the hybrid Prius in the United states for the first time as the automaker adjusts its U.S. manufacturing operations to meet consumer demands for smaller and more fuel-efficient vehicles. Prius will be the second hybrid car next to the hybrid version of Camry sedan, that is being scheduled to build outside Asia. Camry’s hybrid version is built in Georgetown, Kentucky.
The automaker will start building Prius in late 2010 at a new plant in Blue Spring, Mississippi. It was originally scheduled to produce the Highlander sport utility vehicle at the plant.
The Princeton plant in Indiana will now make the Toyota Highlander SUV. Its production will begin in fall, 2009.
Reportedly, Highlander sales were down 38.9 percent in June. Its total sales for the first half of this year were down 5.2 percent as compared to the same period a year ago.
Other production shifts in the face of the changing market include consolidation of Toyota’s Tundra full-size pickup truck at the San Antonio plant in late 2009. Tundra is currently built at plants in Indiana and Texas. In addition, Toyota will temporarily suspend Tundra and Sequoia production beginning August 8 due to the declining overall market for full size trucks and SUVs.
Toyota said such moves have been taken as the U.S demand for trucks and SUVs continues to decline. Toyota’s total U.S. sales fell by 21 percent in the month of June as compared with 2007.
Tundra’s U.S. sales fell 52.9 percent to 10,238 vehicles in June, as compared with 21,727 vehicles sold in June 2007. In the first half of this year, Tundra sales were down 7.6 percent compared to the same period of 2007.
The sales of the Prius also fell but this was because Toyota failed to keep up with the growing demand for this fuel-efficient hybrid. Its sales declined 33.7 percent in June to 11,765 vehicles. And for the first half of 2008, sales declined 3.2 percent to 91,440 vehicles, as compared to 94,503 units sold during the first half of 2007.
Jim Wiseman, vice president for Toyota Motor engineering and Manufacturing North America said, “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, suppliers and communities where our plants are located.” He further added, “By using this downturn as an opportunity to develop team members and improve our operations, we hope to emerge even stronger.”
While making these changes in production line, Toyota assures that the workers who build its trucks and SUVs as well as workers who build engines for the Tundra and Sequoia will stay on the job through the shutdown. The San Antonio plant employs 1,900 people, while the Princeton plant employs nearly 4,500.
