A 1700-acre site inBlue Springs, Mississippi, near Tupelo, was selected by Toyota Motor Corp. for the Japanese automaker's latest assembly plant. The factory, which will turn out Highlander crossover SUVs in 2010, is the second major auto assembly plant to locate in the state in the last decade.



Mississippi Governor Haley Barbour said that the state lured Toyota with an incentive package close to that which attracted Nissan to Canton , Miss. That package was reported to be $363 million.



The Toyota plant will initially employ 2000 employees to turn out 150,000 or so Highlanders. The company is expected to add a second vehicle to the plant after it is up and running in 2010. Toyota makes multiple vehicles off the Highlander platform, including the Camry, Sienna minivan, and Lexus ES. One Mississippi official hinted that Toyota has already told the State that it has plans to employ 4000 employees, which implies a doubling of the plant.



Mississippi bested Tennessee and Arkansas to win the $1.3 billion plant, plus the accompanying investment by supplier companies. One of the reasons cited by Toyota officials for choosing Northeast Mississippi was the level of education and work ethic of the state's residents.



State officials said about half the incentive package will be used to clear timber from the factory site and improve the secondary roads between the factory location and Rt. 78.



Toyota Manufacturing vice president Ray Tanguay said he liked what he saw during several visits to Mississippi . "On my visits to Northern Mississippi, I have talked with area companies and observed their workforce," said Tanguay. "What I observed were people who are educated, ethical, and friendly with a strong work ethic -- a perfect match for the Toyota Way ." He added that the area's existing companies had high praise for the workforce. "They were definitely the best sales people."



Toyota will now have manufacturing operations in seven states including West Virginia, Texas, Indiana, California, and Kentucky . Toyota has been under the microscope the last year or two as it is poised to pass Ford as the number-two automaker in the U.S. and number-one worldwide. Some business leaders and legislators have complained that the Japanese government manipulates its currency against the U.S. dollar to keep the yen weak. That keeps prices of Toyotas down in the U.S. and enhances profits when dollar profits are converted to yen. Lobbyists for GM and Ford and Michigan legislators have long called for intervention on the part of the U.S. government to level the playing field. Mississippi Senator Trent Lott (Rep.) said at Tuesday's press conference, "We are warriors on your behalf. We will look after your interests."



The new plant spotlights how Toyota is on an upswing in America while General Motors, Ford, and Chrysler are struggling for survival and closing plants. Toyota just began production of its full-size pickup trucks in San Antonio , a plant that is expected to expand to 300,000 units from the current 200,000. And it is about to expand production of the Camry sedan, the U.S.s best selling car, into a Subaru plant in Indiana that turns out Subaru Legacies and Tribecas. Toyota owns a minority stake in Subaru parent Fuji Heavy Industries. Toyota is also building a new plant in Ontario, Canada, to build RAV4 SUVs.



Toyota's move to Mississippi continues a trend of Asian carmakers choosing Southeastern U.S. sites. Not only is it far away from the United Auto Workers' strongholds, but manufacturers like Toyota are welcomed with open arms by states who have lost most of their manufacturing base - textiles and furniture - to Asian countries. Toyota said workers will make about $20 per hour plus health and retirement benefits.

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