Toyota is making a strategic move to relocate part of its GR Corolla sports car production to Britain, investing around $56 million in a dedicated production line. This decision, as reported by Reuters, aims to utilize excess capacity in Britain to reduce delivery wait times for the GR Corolla, independent of US tariffs.
The shift comes in the context of the recent agreement by the Trump administration to lower tariffs on auto imports from Britain to 10% for up to 100,000 vehicles annually. At the same time, Japan is working to repeal the 25% tariffs imposed on all auto imports by the US, presenting challenges for global automakers.
Currently, Toyota produces the GR Corolla in Japan for both domestic and international markets, including North America. However, the high demand for the sports car in North America has outpaced supply. To address this issue, Toyota plans to establish a production line at its Burnaston plant in Derbyshire, aiming to produce 10,000 units annually starting from mid-2026.
The Burnaston plant, which has been operational since 1992, has seen a decline in production post-Brexit. It already manufactures the base model of the Corolla GR, making it a suitable choice for the new production line. Engineers from Japan will assist in transferring production technology and expertise to the new facility.
While Toyota has not publicly confirmed the report, the company stated that it continuously seeks ways to optimize production. 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 primarily 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 to ensure stable prices for consumers. The GR series, inspired by Chairman Akio Toyoda’s passion for racing, integrates motorsport technology into commercial vehicles. While the sales volume of the GR series 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. Overall, Toyota’s decision to relocate part of its GR Corolla production to Britain demonstrates its commitment to enhancing efficiency and meeting the growing demand for high-performance vehicles.
