Mississippi Toyota Prius (TM) Plant On Hold

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10:04:53 am on December 16, 2008

Although Toyota’s Blue Springs, Mississippi plant is 90% done and the company has invested over $300 million into it, the company has decided to put the project on hold due to the economic collapse, which has caused the bottom to drop out of the US auto market. Since even hybrids aren’t selling well at the moment, Toyota has put the plant on hold "indefinitely."

CLSA’s Tokyo-based analyst, Christopher Richter, commented on the decision:

"With the U.S. auto market having collapsed, at this point it doesn’t make sense to have the plant at all. Not even hybrids are selling well. It’s taken a few steps for Toyota to come to this. I don’t think they like canceling plans." The cost of this constant mind-changing may be limited as Toyota never moved in the heavy equipment, he added.

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