With the increasing demands for automobiles, Toyota Motor Corp. needs a new assembly plant in the United States. In this regard, the automaker envisions a new facility in the south to serve as its eighth assembly plant in the United States. Auto enthusiasts hope Toyota will name the new plant soon.

Toyota is considering 3-5 locations, including Arkansas, Chattanooga, Marion, and Tennessee. This information was reported by the Wall Street Journal last Thursday. According to the newspaper, Alamo and North Carolina are also possibilities. The automaker intends to add another assembly plant in the US to boost its production. With the new plant, Toyota plans to produce 200,000 vehicles. Such production is expected to begin in 2009. The new plant along with other Toyota plants would increase production to around 2.2 million vehicles annually, compared to the 1.5 million vehicles it is currently producing.

The new plant would also assemble Toyota Highlander parts and accessories for the next generation of the said sport utility vehicle that is compared to the Chrysler Pacifica. The wagon uses some of the Toyota Solara parts.

Toyota has been contemplating the purchase of the plant for months. The new plant is expected to help grab more of the US market from Toyota’s auto rivals. The newspaper also reported that the plant would strengthen Toyota’s position if a backlash arises against non-US brands due to mounting problems from domestic automakers and their suppliers. Toyota will likely expand its existing engine manufacturing facilities in the United States, most likely by strengthening its engine plant in Alabama.

Toyota posted an increase of more than 12 percent in sales for December and for the full year. Its December sales increased its total 2006 sales to 2.54 million. According to analysts, Toyota is about to climb higher. “Toyota’s rise to third place is a warm-up for its rise to No. 2 during 2007 in the US as it overtakes Ford, and also as it rises to No. 1 globally and overtakes GM.” reported Glenn Reynolds, CEO. from New York-based research firm Creditsights Inc. “The Camry was once again America’s best-selling car, for the fifth year in a row and for the ninth time in the past decade.”