07/18/2008 05:12 am ET Updated May 25, 2011

Prius To Be Manufactured In United States

Toyota Motor of Japan said Thursday that it would build its popular gas-electric hybrid sedan, the Prius, in the United States for the first time as it tries to meet surging demand and struggles with falling sales of big trucks.

Starting in 2010, Toyota plans to make the Prius at a new factory in Blue Springs, Miss., that was originally intended to assemble sport utility vehicles. Toyota said shifting production to the Blue Springs plant, which is under construction, will help it alleviate shortages of the Prius, which gets an average of 46 miles a gallon and has months-long waiting lists at most dealers.

Toyota also said it would stop building its two largest vehicles, the Tundra pickup and Sequoia sport-utility vehicle, for three months before permanently halting production of the Tundra next spring at one of two plants that make it.

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