Toyota will move some of its production of the popular GR Corolla sports hot-hatchback to the U.K., targeting exports to North America.
While the move is not thought to be driven by the U.K.’s softer 10% tariff on vehicle imports negotiated with the U.S., it is bound to help keep the price of the car down to meet growing demand from American consumers.
Toyota will spend around $56 million on a dedicated line at its plant in Burnaston in Derbyshire, north of the nation’s Midlands region, according to two sources speaking to Reuters.
Toyota produces the GR Corolla in Japan for the Japanese market and for export to North America and other markets.
However, demand has been so great in North America, where engine enthusiasts have a keen interest in the gasoline-powered car, that the company is struggling to meet it with current Japanese production capacity.
By shifting some production from Japan, Toyota aims to use excess capacity in Britain to help it cut delivery wait times for the car, say the sources who spoke on condition of anonymity.
However, one tariff problem that may affect Toyota’s ability to benefit from the U.K.’s lower tariffs is that the nation has a cap of 100,000 vehicles a year imported into the U.S. to achieve the lower tariff but its exports to the U.S. in 2024 exceeded that figure.
Toyota plans to produce 10,000 cars annually at its U.K. plant for export to North America from the middle of 2026, according to sources.
Burnaston began operations in 1992 and possesses advanced production technology, but production has declined since the U.K.’s exit from the European Union has curtailed trade.
The plant already produces the Corolla hatchback, making it a natural choice, one of the sources says, adding that engineers will be temporarily dispatched from Japan to share production technology and other expertise.
When approached for comment, Toyota says it is always looking for ways to optimize production but there has been no official announcement.
The GR Corolla is one of three high-performance vehicles built on a dedicated line at Toyota’s Motomachi Plant in Toyota City with GR Corollas accounting for 8,000 of about 25,000 cars made annually.
The GR series was born out of Toyota’s Gazoo Racing program focused on rally-derived road cars and currently includes the GR Corolla and the GR Yaris.
