But one auto major Toyota Motor has on the other hand changed its plans to setup a plant in the USA to build its hybrid Prius. There is news in the US media that Toyota Motor Corp. has announced that it will postpone plans to build its Prius hybrid passenger car in the U.S., perhaps by as much as six years.

This is the second time Toyota has postponed U.S. assembly of the Prius. In 2008, during a period of rapidly rising gasoline prices, the Prius was sold out and Toyota decided to build the popular hybrid at a plant in Tupelo, Miss., where construction was already underway for an assembly plant to build the mid-size Highlander SUV. But as the economic recession worsened, Toyota halted completion of the plant leaving an empty shell of a building. Under pressure from the Mississippi legislature that had invested money in the facility, Toyota announced in June that it would proceed with completion of the plant but this time it was the Corolla model that would be assembled at Tupelo, not the Prius.

Toyota executives have told media that plans to build the Prius in the U.S. have been put on hold indefinitely and would likely only go forward when the hybrid was remodeled.

The decision leads to a bit of head scratching prompted by thoughts that perhaps Toyota is developing an entirely new EV to replace the Prius or perhaps the company is concerned about moving too quickly in light of the quality issues it has faced over the last several months and the numerous recalls the company has been forced to make.

We need to wait and watch the developments closely in coming days.

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