Toyota moves forward on U.S. plant

By Ben Rooney, staff reporter


NEW YORK (CNNMoney.com) -- Toyota announced plans Thursday to build Corollas at an unused plant in Mississippi beginning late next year.

The automaker said in a press release that it will start manufacturing the top-selling compact sedan at a facility in Blue Springs, Miss., beginning in the fall of 2011.

The automaker plans to hire 2,000 workers to staff the plant, which it said is nearly complete. Toyota announced plans to build the plant in 2007, but the project was put on hold a year later as the economy slowed and auto sales plunged.

"Toyota remains committed to making vehicles where we sell them and to maintaining a substantial manufacturing presence in North America," said Yoshimi Inaba, president and chief operating officer of Toyota Motor North America.

The plant was originally built to make the Highlander sport-utility vehicle and Prius hybrids. Toyota said it decided to build Corollas at the plant in order to begin production as soon as possible.

The move came as Toyota (TM) looks to recover from problems caused by massive recalls and production shutdowns this year. The company has recalled millions of vehicles worldwide for safety issues related to sudden acceleration and breaking problems.

But the decision to reopen the Mississippi plant suggests the automaker is trying to move past its recent troubles, and after a rebound in auto sales.

In May, U.S. auto sales increased 19%, compared to the very weak sales of a year earlier, according to sales tracker Autodata.

While there was an overall increase in sales, helped by large orders from businesses, Toyota's gain of 7% was weaker than industry experts expected.

By comparison, rival automakers General Motors and Ford (F, Fortune 500) both reported double-digit percentage sales gains in May.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Find Your Next Car
Index Last Change % Change
Dow 18,285.74 0.34 0.00%
Nasdaq 5,090.79 19.05 0.38%
S&P 500 2,130.82 4.97 0.23%
Treasuries 2.18 -0.07 -2.93%
Data as of 6:00am ET
Company Price Change % Change
Bank of America Corp... 16.73 -0.01 -0.06%
AT&T Inc 35.07 0.45 1.30%
General Electric Co 27.72 0.08 0.29%
Apple Inc 131.39 1.33 1.02%
Yahoo! Inc 43.68 0.88 2.07%
Data as of May 21
Sponsors

Sections

Building the replacements for tens of millions defective airbags and finding owners of the recalled cars will be a difficult and time-consuming process. More

Chelsea Clinton took the stage during Internet Week New York to discuss a new report that looks at the state of women around the world. More

Google apologized for and fixed Google Maps issue where users were taken to the White House if they type in variations of the n-word. More

For $2,000 a month, Beacon will offer unlimited flights between New York and Boston -- and plans to add more cities soon. More

Rents increased 4% in April from last year while home values only rose 3% during the same time period. More