Toyota will build its eighth North American assembly plant in Blue Springs, Mississippi, just outside of Tupelo. It will be able to build 150,000 Highlanders per year starting in 2010, at a cost of $1.3 billion. It is expected to create approximately 2,000 new jobs for the region and indirectly create work for many more. Operations at the plant will include stamping, body weld, plastics, paint, and assembly. Mississippi will provide for new railroad access to the plant.

Site preparation and construction for the plant is scheduled to begin later this spring. A majority of the hiring will take place closer to the start of vehicle production.

The Scion xA hatchback will, according to Automotive News, be replaced by an xD hatchback, which will be larger and faster. The second-generation xB will be made larger and faster, too. The new xB will go on sale in April, the xD in August. The xB engine will now be the 2.4 liter Camry engine, with 158 horsepower, up from a 103 hp 1.5 liter four; an electronic automatic will be available. The xD will move to a 128 horsepower Corolla engine, up from that same 103 horsepower four. New will be standard side airbags for both front and second row. The xB will be a little less boxy.

In January, America’s favorite brand was Chevrolet, but number two wasn’t Ford; it was Toyota, which finished just 2,657 sales behind the bow tie.

There was more bad news for the folks in Dearborn. They were fourth overall in sales. Though some reporting agencies (like Ward’s) will say Ford was third, that involves adding Jaguar, Land Rover and Volvo to Ford while excluding Mercedes from DaimlerChrysler. In fact, whether you compare Chrysler, Dodge and Jeep sales to those of Ford’s domestic brands, Ford, Lincoln and Mercury, or compare the totals including the international brands, Chrysler comes out ahead.

While Toyota Motor Sales did outpace DaimlerChrysler as a whole, Chrysler Group’s three brands outsold Toyota Division (including Scion) in January. Total for Chrysler was 156,308; Toyota and Scion came up with 153,732.

Although an extra selling day last month put Chrysler in the red by about 3% based on daily sales rate (DSR), actual sales volume was up 0.54%, to 156,308 units. That was good for an extra three-quarters-point of market share. Chrysler was the only one of the Detroit automakers to gain share in January. GM’s adjusted sales were down nearly 20.5% and Ford’s were off over 23.5%.

January is typically a light month for light truck sales, but this year was a little different. The balance between car and truck sale changed only slightly from December, typically a good month for trucks, to January. While some of this, no doubt, is due to the fact the gasoline prices did not rise in January due to a warmer-than-usual winter, a lot can be attributed to the line-blurring crossovers, which continue to attract buyers who want to get out of a traditional SUV but don’t want to go back to a sedan.

Based on the numbers reported by the major automakers, 1,087,001 cars and light trucks left dealer lots last month. That’s a volume decline of almost 4.9 percent. Adjusting for the extra selling day, the actual deficit was over 8.5 percent. Those numbers yield a seasonally adjusted sales rate of 16.73 million light vehicles, off just slightly from December 2006 but down sharply from the 17.54 million pace of last January. Most industry watchers are looking for the industry to have a so-so year in 2007.

Most of the overall sales leaders by segment held no major surprises. The Ford F-Series held onto its place at the top, followed by Chevy’s Silverado. The Camry was the best-selling car coming in comfortably ahead of the Accord, which just barely edged the Corolla for second. The Dodge Ram fell to No. 8 overall, outsold by both the Chevrolet Impala and Nissan Altima. It was followed by the Caravan at No. 9. Top compact pickup was the Toyota Tacoma.

There were some changes in the pecking order among the SUVs. Top-seller was the Honda CR-V with the Toyota RAV4 capturing the second spot. The Jeep Grand Cherokee was the best-selling American SUV or crossover and the Wrangler managed to outsell the Ford Explorer.

There weren’t any all-time sales records set last month, but there were several “best-ever” January totals. New records were set by Audi, Honda, Kia, Lexus, Suzuki and Toyota. Mazda had its best January in thirteen years and Chrysler had its best start to the new year in six years.

(by Bill Cawthon)