Toyota Motor Corp (NYSE: TM) has indefinitely halted construction of a new plant in Mississippi that was to begin producing Prius hybrids in late 2010, according to a Reuters report.
On Monday the automaker cited a "steep decline" in U.S. auto sales as the reasoning behind the decision. The plant would have been Toyota’s eighth in North America.
In August the Japanese automaker announced that the plant would produce the Prius, instead of the Highlander mid-size SUV, as originally planned. In announcing that shift, the company also said it would suspend production of the full-size pick-up truck Tundra, as well as its Sequoia model.
The latest announcement by Toyota, which is No. 2 in U.S. auto sales after General Motors Corp (NYSE:GM), highlights the difficult market conditions for U.S. automakers. Sales have slumped to their lowest levels in 25 years amid weak consumer confidence and tight credit, according to Reuters.
Read the full report at the link below.
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