Toyota will shift its strategy for the North American market to fuel-efficient small and midsize cars, in response to high gasoline prices and a slowing US economy, according to a report in the Asahi Shimbun.

The company plans to operate its new Texas plant at less than full capacity initially. The factory, which begins operations in November, will produce the Tundra full-size pickup.

Output in 2007 will be kept at about 150,000 units, below the plant's capacity of 200,000. Toyota had earlier planned about 220,000 units, including overtime work, a senior company official said.

The Tundra will become bigger after a redesign scheduled for early 2007.

Toyota instead plans to double production of the popular Camry midsize sedan to 200,000 units a year in October 2007 at Subaru of Indiana Automotive Inc.

The US subsidiary of Fuji Heavy Industries Ltd. will start production of the Camry in February 2007, with an initial annual capacity of 100,000 units. It will move to two shifts in October 2007.

In 2008, Toyota's North American production capacity will reach 2.08 million vehicles, exceeding the 2-million mark for the first time.

In addition to the Camry production at the Fuji Heavy subsidiary, Toyota Motor Manufacturing Canada Inc.'s second plant in Ontario is scheduled to be completed in 2008.