Prius Manufacturing Coming to America, SUVs Shudder

Toyota says it is bringing its first Prius manufacturing plant to the U.S., and after doing a car shuffle, SUVs will have to sit out the dance. The Priuses will be built at a plant under construction in Blue Springs, Miss, with manufacturing to start in late 2010. To make room for new Prius production, Toyota is moving manufacturing of its Highlander SUV from its Mississippi plant to Indiana, and bumping Tundra truck production out to Texas. Toyota says by bringing the Prius stateside, it is “responding to changes in consumer demand.”

Prius sales crossed the 1 million mark earlier this year, and as overall hybrid sales have risen over the past year, the Prius still dominates the space.

Adding insult to injury for the beleaguered gas guzzlers, Toyota also says it will suspend North American production of the Tundra and Sequoia for three months “due to the declining overall market for full-size trucks and SUVs.” But unlike domestic automakers, which are hemorrhaging jobs amid slumping sales and record gas prices, Toyota says its employees will continue to work.

Toyota is proving again that it is far nimbler than many of Detroit’s ailing behemoths, which are all still trying to make a dent in the hybrid space. While Toyota works to open a new hybrid plant and add solar panels to the Prius, domestic car makers are pondering more layoffs and brand cuts.

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