Prius project on hold in the US
December 16, 2008 by Matt Brogan
With US sales of the Prius is steep decline, Toyota’s board in Japan reached the decision this morning to place the project on hold. The company’s plan to build a new manufacturing plant for Prius near Tupelo, Missouri has also been shelved.
Sales of the hybrid car have slowed dramatically in recent weeks as petrol prices dropped from a summer high of more than $4 a gallon.
The Prius sold 8,660 units in November, down from 16,737 in November 2007. Total Toyota sales in the United States fell 32 percent in November.
This is the second time Toyota has changed plans on the $1.3 billion Mississippi project, which has already begun to draw component suppliers to the area.
In February 2007, Toyota announced it would spend $1.3 billion there to produce a new generation of Highlander crossovers. But after Toyota broke ground, SUV sales began to soften. In July of this year, Toyota said it instead would build the Prius there.
A spokeswoman for Toyota’s North American manufacturing operations says the company will continue constructing the building, which is about 90 per cent complete. The company made its decision today before it had begun ordering the equipment that would go into the plant.
Toyota has no timetable to resume the project, the spokeswoman says, but it will remain a Prius factory whenever the project restarts.
Print it: 
Wow the USA get a new president and they have their brains back !
Its a question of spending money on a car that’s more expensive less economical god damn ugly or FOOD ON THE TABLE!
Funny how the environment goes out the window when it comes to a down turn in the economy ha!
Prius sales in steep decline – does that mean that Americans think the build quality is as crap as the [Aussie built] Pontiac G8 whose sales are also decreasing?
No… but hopefully you see my point
Wheelnut,
We do see your point.
Probably McKay won’t but, it’s horses for courses.
Toyota has had a free ride of publicity with the Pre-Arse, hiding the fact that it’s a crap, ugly car,that’s twice the price of a corolla, with only only marginal savings in fuel costs.
And then they’ve copped $35million from Oz to build the hybrid camry, when all it is, will be installing fully imported parts.
These guys must be laughing themselves to death!
Basically, people now seem to be aware that some other car companies are working towards hybrid & electric cars, not just The Big T.
They need to introduce the all new Pre-Arse asap, to keep their momentum up.
The current one has been out for yonks; no wonder sales have dropped off.
JasonP – not only have sales of the Pre-Arse dropped off; but I’d suspect that a number of those who have actually driven a Pre-Arse have dropped off at some point whilst behind the wheel..
there is always a silver lining, isnt there?
Maybe they can focus on a real green alternative, rather than a token for poseurs (sp?)
I liked the recent Topgear episode where they drove a Priarse around a track flat out and followed in an BMW m3? and the BMW returned better fuel consumption over several laps.
Willie hear ya, Willie dont care.
Realcars,
i also like the comparison that was run between a Prius and a LPG territory. The run was done with both of them on the exact same run at the exact same time conducted by the exact same people with no where to fudge figures.
needless to say the territory kept more $$$ in the drivers pocket.
(I should say it was a LPG converted/dual fuelled Territory of course)
And on topic,
Isnt it funny how the once declared insane comments about toyota also feeling the pinch too, now have made it to print
It is not the Prius or Toyota’s fault
Americans want big cars, they will only go small or economical when they are dragged kicking and screaming to them.
If GM is given a lifeline it will build big cars and SUVs again because to do otherwise would be the end … quicker.
Of course next time petrol goes to $4 a gallon they are screwed again.
Jason P : The Prius is a good unit but has reached it’s time in current form. The next generation is due official release sometime in the first qtr of 2009, so i believe.
The hybrid Camry has been selling up at strom in the US in good numbers aswell but like everyone at the moment has seen recent declines.
The world is experiancing an economic downturn which is a very normal part of the economic cycle as things go up and things come down .. were there is a boom there is a bust, were there is a bust there is a boom.
It’s a natural cycle that keeps everything in check otherwise none of us will ever be able to afford a house, car or any form of luxuries.
Thank-god interest rates and petrol prices have come down to help us along but you can be certain they will rise again and nodoubt petrol prices before interest rates and when they do atleast the likes of Toyota and Honda are prepared for an influx of buyers towards alternative fuel powered vehicles again.
Remember, part reason for the the awkward situation GM, Ford and Chrysler find themselves in today has been largely due to thier poor foresight and future product planning.
Initial components for the hybrid system on the Camry will be imported from Japan as Australia currently lacks the expertise in developing hybrid components / systems to Toyota’s standards but they have indentified a number of local companies they will be working with to improve thier excellance so hybrid components for Toyota can eventually be manufactuered here.
In all fairness to Toyota, they deserve respect in the fact they do want to manufactuer hybrid systems in Australia but before that can become possible they need to work inconjuntion with some companies they have indentified to not only assure the expertise but necessary levels of quality control.
It is a good process forward that ultimately will introduce additional expertise to the local car industry so instead of critising for once, maybe it is better to make the effort to understand.
It’s about taking steps forwards and not making a jump to fall into a hole instead because then you can be assured nothing will come of it.