Toyota Motor has announced that its currently under-construction Toyota Motor Manufacturing facility in Mississippi, which was originally scheduled to produce the Highlander sports utility vehicle, is to instead begin production of the Prius hybrid in the latter half of 2010.
The Prius will be the second Toyota hybrid vehicle to be produced in North America, with Toyota Motor Manufacturing Kentucky, already producing the Camry Hybrid.
Toyota was the latest automaker to announce major production changes in response to lagging U.S. auto sales. Industrywide, sales have dropped 10 percent in the first six months of this year and are moving at their lowest pace in more than a decade. High gas prices have accelerated the drop in pickup and sport-utility vehicle sales faster than automakers had predicted, and they're scrambling to keep up with demand for smaller, more fuel-efficient cars.
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