Dec 15th, 2008 by RJ Menezes
Toyota is taking a pounding. The company’s recent sales have been forgettable to say the least. The company is now freezing plans it had to build the Prius hybrid here in the U.S. starting as early as spring of next year. The company stated the unforeseen economic downturn as the main culprit, of course.
Toyota’s board of directors reached the decision late today in Japan. They will halt the $1.3 billion project near Tupelo, Miss., “due to the steep decline” in the United States. Toyota has no timetable on resuming construction, spokeswoman Barbara McDaniel said, though the plant will build the Prius when, or if, the project resumes.
Recent Prius sales have reduced to nearly half of what they were at the same time last year. Lowering gas prices could easily be pointed out as the culprit here, but there more to it than that. Toyota’s U.S. sales in November are down 32% compared to last year. The decision to not build the Prius for now seems to be the smartest move for the Japanese auto giant.
Source: Automotive NewsÂ
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