Toyota delays production at Mississippi plant

12/17/2008

By Candy McCampbell

Toyota Motor Corp. announced this week that it will suspend indefinitely the production start at its plant in Blue Springs, Miss. Production was originally to begin in 2010 on the $1.3 billion plant, which will make the hybrid Prius.

Construction of the facility is about 90% complete and will be finished on schedule, although the costly and lengthy production equipment and machinery installation will be delayed.

Toyota said it has invested about $300 million in the plant, while Mississippi has invested $200 million and local governments about $35 million, according to Mississippi Gov. Haley Barbour.

Contractors at the site, employing about 2,000 workers at peak, include West Brothers Construction, Columbus, Miss.; Aristeo Construction, Livonia, Mich.; L&T Construction, Hernando, Miss; M&H Construction, Southaven, Miss.; Walbridge Aldinger Co., Detroit; W.G. Yates & Sons Construction Co., Philadelphia, Miss.; Graycor Construction Co., Homewood, Ill.; and Harrell Contracting Group LLC, Ridgeland, Miss.

Toyota – which has 14 manufacturing plants in North America – cited a 48% drop in sales of the gasoline-electric Prius last month as gasoline prices also dropped from more than $4 a gallon to $2 a gallon.

The plant, near Tupelo, was initially announced to produce Highlander SUVs, but Toyota switched gears in July to the Prius to meet demand for the fuel-efficient vehicle.

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