Toyota plans new SUV plant in Mississippi

Tokyo, Feb 27: Toyota Motor Corp., Japan's biggest auto maker, is likely to invest some 100 billion yen (0 million) to build a sport utility vehicle assembly plant in the U.S. state of Mississippi, the Nikkei business daily reported on Tuesday.

The plant, which would be the auto maker's eighth vehicle assembly factory in North America, is set to have an annual production capacity of 150,000 units and would come on line in 2009, the paper said.

Toyota, which may claim the title of the world's biggest auto maker from General Motors Corp. this year, has said it is considering expanding its U.S. manufacturing capacity and is reviewing locations.

But company spokesman Tomomi Imai said in response to the Nikkei report that no decisions had been made on such a move.

Toyota is performing well in the United States market, the world's biggest, winning sales from both GM and Ford Motor Co.

both of which are undergoing painful restructuring.

At the same time, it shipped a record number of vehicles from Japan to the United States last year as its North American plants were unable to keep up with demand.

The Nikkei said Toyota plans to build the Highlander SUV model at the new plant and an official announcement could come this week.

Other states in the running for the new plant had included Tennessee and Arkansas, it said.

Reuters