Toyota Begins Highlander Production in Indiana

Toyota Motor Corp. begins production of the Highlander cross/utility vehicle today at its Princeton, IN, plant.

The Highlander becomes the auto maker’s 12th model to be built in North America. Toyota already makes the Toyota Sequoia fullsize SUV and Sienna minivan at the plant.

The Highlander originally was slated to be built at Toyota’s plant in Blue Springs, MS. However, following the rise in gas prices in summer 2008, the auto maker decided to produce the Prius hybrid-electric vehicle in Blue Springs, shifting the Highlander to Indiana. The Mississippi plant now is on hold due to the downturn in new-vehicle sales.

Capacity was freed up for the Highlander in Indiana after Toyota consolidated all builds of the Tundra fullsize pickup truck at its San Antonio, TX, plant.

Toyota says it invested $450 million to ready Princeton for production of the Highlander, bringing its total investment in the plant to $3.7 billion.

The facility’s 4,200 workers have been retained and received training during the months-long drought between Tundra and Highlander production, the auto maker says.

Last year, a top Toyota manufacturing official told Ward’s the auto maker also might build an HEV version of the Highlander at Princeton, but a company spokesman says at present only the non-hybrid Highlander models are slated for U.S. production.

Highlander sales through September were down 25% to 61,484 units, Ward’s data shows.