Toyota is set to relocate part of its GR Corolla sports car production to Britain, with plans to invest approximately $56m in a dedicated production line, reported Reuters, citing two people with knowledge of the matter.
This strategic shift aims to utilise excess capacity in Britain to reduce delivery wait times for the GR Corolla, a move not influenced by US tariffs.
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The decision comes amidst the backdrop of the Trump administration’s recent agreement to lower tariffs on auto imports from Britain to 10% for up to 100,000 vehicles annually.
Meanwhile, Japan seeks to repeal the 25% tariffs imposed on all auto imports by the US, presenting an additional challenge for global automakers.
Currently, Toyota manufactures the GR Corolla in Japan for both domestic and international markets, including North America.
However, the high demand from engine enthusiasts in North America has outpaced supply.
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By GlobalDataTo address this, Toyota will reportedly establish a production line at its Burnaston plant in Derbyshire to produce 10,000 units annually from mid-2026.
The Burnaston plant, operational since 1992, has experienced a production decline post-Brexit.
It already produces the Corolla GR’s base model, making it a suitable choice for the new production line.
Engineers from Japan will temporarily assist in transferring production technology and expertise.
In response to inquiries, Toyota stated it continuously seeks ways to optimise production, though it has not publicly confirmed this report.
The GR Corolla is one of three high-performance vehicles produced at Toyota’s Motomachi Plant, which is currently operating at full capacity.
Last year, the Motomachi Plant produced around 25,000 cars, including 8,000 GR Corollas.
Toyota’s US facilities are also focused on meeting the demand for hybrids and other vehicles, limiting the possibility of shifting GR Corolla production there.
Toyota plans to absorb any cost increases from tariffs through cost-cutting measures, ensuring prices remain stable.
The GR series, inspired by Chairman Akio Toyoda’s passion for racing, integrates motorsport technology into commercial vehicles.
While the GR series’ sales volume is modest, the vehicles offer higher margins due to their intricate production processes.
The transfer of North America-bound production to Britain could allow the Motomachi plant to focus on vehicles for Japan and other markets.
