Toyota Could Build Plant in Ark., Tenn.

2006 Toyota Highlander Hybrid

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The Associated Press reports thatToyota has narrowed down its list of potential plant sites to two.

The two finalists, the AP says, are Marion, Arkansas, and Chattanooga, Tenn. The Marion site was a finalist for the Tundra plant now operating in San Antonio, Texas , and is 1750 acres.

No more details were offered about the Chattanooga site, but Tennessee’s abundance of auto plants – Saturn and Tennessee – would seem to give Arkansas an edge, particularly if the state can come up with the usual $250 million in incentives to locate there, as has been the practice in Alabama, Mississippi, and other non-auto-producing states in the South, eager to land their first car assembly plant.

The new plant has been rumored as a production facility for the Highlander crossover vehicle. A 2008 Highlander and Highlander Hybrid are due to be shown at next month’s Chicago auto show.

A final decision could come next month. The plant would be Toyota’s eighth in North America.

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