Toyota, a more stable automaker, is now feeling the impact of the self-fulfilling prophecy, that is, the breakdown of the economy, with talks coming out that the production of the 2010 Toyota Prius in the Tupelo, Mississippi plant will be pushed back.
This will restrict Prius production to Japan for the moment. The demand for the gas-thrifty hybrids has lowered as fuel prices have fallen to under-$2.00 levels, leaving merchants sitting on a healthy but still enviable 21 day supply. This could also be a re-examination of approach, since the dollar has strengthened and a collapse of any of the big three could be a final blow to some shared domestic parts suppliers, leaving the Prius stranded with an otherwise profitable assembly line. No movement toward Tupelo is expected to happen soon.
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