Bloomberg: Toyota Considering Making Prius at Calif. Plant It Shares With GM

But a spokesman for the automaker's production division denies the report.

By Scott Doggett, Contributor

Toyota is considering making Priuses at a California plant it shares with General Motors, not a factory in Mississippi where production of the popular hybrid had been planned, Bloomberg reported today, citing two unnamed sources.

But Mike Goss, external affairs manager with Toyota Motor Engineering & Manufacturing North America, or TEMA, said "we haven't changed our plans to build Prius in Mississippi. Nothing's changed."

TEMA is responsible for Toyota's engineering design, research, development and manufacturing activities in the U.S., Canada and Mexico. It operates 14 parts and vehicle manufacturing plants across North America.

The Bloomberg report stated that "given the time and cost to finish the half-built Mississippi facility, it may be easier to make the car at New United Motor Manufacturing," a 380-acre factory Toyota shares with GM in Fremont.

The news service attributed the information to "people who asked not to be identified because the discussions aren't public."

Goss denied that the $1.3 billion plant in Blue Springs, Mississippi, is half-built, stating instead that construction is completed.

"At this point, we've finished the building," he said.

Goss said "the Bloomberg story says something about 'unnamed sources,' but we have not changed our plans."

A drop in U.S. demand for the low-emissions, fuel-efficient Prius has delayed their production at the plant. Goss said when production would commence "will depend on the market." He would not speculate on when that might be.

Toyota and GM have shared the Fremont plant since 1984, running it as a joint-venture equally owned by the two largest carmakers.

The factory's future was called into question by GM's bankruptcy, which includes closing 12 more plants by the end of 2011 under an accelerated plan to shutter 30 percent of its U.S. assembly sites.

Along with the Pontiac Vibe, derived from Toyota's Matrix model, the Fremont plant builds Toyota's Tacoma pickups and Corolla small cars.

Posted by

Scott Doggett June 17, 2009, 11:10 AM

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