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Toyota also said a revival in the auto market is behind its decision to restart construction at the Mississippi plan. Toyota's announcement came the same day that General Motors Co. said it planned to keep most of its factories in the U.S. open through the normal two-week summer shutdown to meet higher demand. The Detroit company said keeping open nine of its 11 assembly pants open will allow it to build 56,000 high-demand vehicles. Thursday's announcement that the Mississippi plant will build Corollas
-- Toyota's No. 2 seller in the U.S., behind the Camry -- marks yet another shift in plans for the plant. Initially, Toyota wanted to build Highlander SUVs there. But in mid 2008, as fuel prices soared above $4 a gallon and hybrid sales soared, Toyota said the plant would produce the Prius instead. The plant should be flexible enough to build both Corollas and Priuses if Toyota chooses to build both models there, said Erich Merkle, president of the consulting firm Autoconomy.com. Toyota said the Mississippi site will build 150,000 Corollas a year. Toyota currently builds Corollas at factories in Ontario and Japan.
According to Yoshimi Inaba, president and chief operating officer of Toyota North America, more than 30 million Corollas have been sold worldwide since the vehicle was introduced in 1966. He said north Mississippi was selected as the plant site because it is centrally located to suppliers. Toyota officials also credited the skilled work force in a region that was once a strong furniture-making market. The state committed $294 million to the project to assist with site preparation, infrastructure and training. Toyota has been working to patch up its reputation in the U.S. following its recalls of more than 8 million vehicles over reports of unintended acceleration. U.S. authorities slapped Toyota with a record $16.4 million fine for acting too slowly on the recalls. Toyota dealers have so far installed fixes on millions of vehicles, but the automaker still faces more than 200 lawsuits tied to accidents, the resale value of Toyota vehicles and the drop in the company's stock. After its recalls, the company announced a slate of generous incentives designed to revive sales, including zero-percent financing across most models and two years of free maintenance. The promotions sent Toyota sales soaring in March and April, but sales last month lagged the industry. Toyota's sales are up 10.5 percent in the U.S. so far this year, according to Autodata Corp. But that lags industrywide gains of 17.2 percent. Still, for the fiscal year ended March 31, the automaker made a profit following the worst loss in its history the previous year.
[Associated
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