Toyota delays new Prius plant

Toyota Motor Corp. indefinitely postponed production of its popular Prius hybrid car at a plant under construction in Mississippi, underscoring the difficulties affecting all automakers competing in the weak U.S. auto market.

Toyota's widely anticipated announcement follows production cuts at its existing North American plants, and similar measures taken by its Japanese rivals to align their output with a drop in demand to 25-year lows.

Honda Motor Co. announced a further reduction in its North American vehicle output Friday, including cuts in production of small Civic cars at a new plant in Indiana. Nissan Motor Co. also has cut production and offered buyouts earlier this year to workers at two plants in Tennessee.

The combined North American production of Japan's three biggest automakers is expected to drop to 4 million vehicles this year, from 4.35 million in 2007, according to CSM Worldwide, a forecasting firm in Northville. It predicts their output will fall further in 2009, to 3.67 million cars and trucks.