Toyota is adjusting its U.S. manufacturing operations to meet customer demands for smaller, more fuel-efficient vehicles.

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The Japanese automaker said Thursday it will start producing the hybrid Prius in the U.S. for the first time at a plant it is building in Blue Springs, Miss. Production will begin in 2010.

Toyota said in a news release that by building the Prius in the United States, the company can respond better to increased consumer demand for hybrids.

The Prius joins the Kentucky-built Camry Hybrid as the second Toyota hybrid built in North America.

The Highlander midsize SUV, originally scheduled to be built in Mississippi, will now be manufactured in Princeton, Ind., beginning in fall 2009.

Production of the Tundra full-size pickup truck, currently built in Princeton and San Antonio, Texas, will be consolidated at the San Antonio plant in spring 2009.

The company also says it will suspend production of the Toyota Tundra pickup truck for three months starting Aug. 8 because of declining demand. Production of the Sequoia SUV will also be suspended.

Production is scheduled to resume in early November. Team members at both the Princeton and San Antonio facilities, as well as the Huntsville, Ala., plant that builds Tundra and Sequoia engines, will continue to be provided work.

"The truck market continues to worsen, so unfortunately, we must temporarily suspend production. But this good news about production mix demonstrates our long-term commitment to our North American operations and to our team members, supplier partners, and communities where our plants are located," said Jim Wiseman, vice president of external affairs for Toyota Motor Engineering & Manufacturing North America. "By using this downturn as an opportunity to develop team members and improve our operations, we hope to emerge even stronger."