Published: July 07, 2009 08:25 am         

NEW: Toyota says Indiana plant retooling to cost $500M

Toyota Motor Corp. says the retooling of its southern Indiana plant for production of the Highlander sport utility vehicle will cost about $500 million.

The company had announced last year that it would start building the midsized SUV at the Princeton factory, but it had not previously revealed the cost of the project.

Toyota spokeswoman Kelly Dillon says the plant is not being expanded and no additional jobs are expected.

The plant’s 4,200-person workforce is down about 300 since Toyota offered Princeton employees $20,000 payments and other incentives to voluntarily leave their jobs. Dillon attributed the reduction to normal attrition and transfers to other plants, as well as the buyout.