Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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

Find Your Next Car
Index Last Change % Change
Dow 17,891.16 117.52 0.66%
Nasdaq 4,817.59 42.24 0.88%
S&P 500 2,081.43 16.13 0.78%
Treasuries 1.86 0.05 2.53%
Data as of 2:57am ET
Company Price Change % Change
Bank of America Corp... 14.77 0.21 1.44%
Ford Motor Co 13.62 0.06 0.44%
Apple Inc 93.64 -0.10 -0.11%
Freeport-McMoRan Inc... 13.55 -0.45 -3.21%
Frontier Communicati... 5.44 -0.12 -2.16%
Data as of May 2
Sponsors

Sections

Shares of Amazon have been on fire lately. Investors are bullish after the company's latest earnings. Even Warren Buffett is a big fan of Amazon CEO Jeff Bezos -- even though Berkshire Hathaway does not own Amazon stock. More

It's getting worse for Puerto Rico. The island defaulted on $422 million in bonds related to its Government Development Bank on Monday. Congress is currently debating an aid package for the island. More

Tech leaders Apple, Alphabet and Microsoft all disappointed Wall Street with their latest earnings reports. And that's dragged the Nasdaq back near correction territory. Is this the beginning of another huge pullback or an overreaction? More

Visa says new software will allow consumers to check out with chip cards as fast as swiping a card with magnetic strip. More