One of the best-selling brands in the world has announced plans to move production of its popular vehicle to the UK as global trade wars and tariffs push more carmakers away from the US.
Toyota revealed that it would be moving some production of its GR Corolla sports car to the UK and spending $56million (£41million) on a new line.
The line of sports cars would be built specifically for exports to North America, with the brand leveraging the UK’s additional resources to ramp up production and cut waiting times.
According to Reuters sources, the move was not in reaction to President Donald Trump's tariffs on foreign vehicle imports.
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Toyota hopes to bring production of its petrol-engine Corolla to the UK by the middle of 2026
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Earlier this month, the US President agreed to reduce tariffs to just 10 per cent on auto imports from the UK with a cap of 100,000 vehicles a year.
Other countries face higher tariffs of 25 per cent, with Japan now looking to lower its rate by producing more cars in the UK.
The GR Corolla is particularly popular in the Japanese market and across North America. But, due to high demand for the petrol model, the car brand has been forced to act.
Sources explained that the brand will launch its production line at the Burnaston plant in Derbyshire with the hope of producing 10,000 cars annually from the middle of 2026.
Burnaston has been a pivotal production hub for Toyota since it began operations in 1992, but has suffered since Brexit.
The plant currently produces the Corolla GR's base model as well as the Corolla hatchback, which is a family hybrid car.
The carmaker will dispatch engineers from Japan to share production technology and other expertise at the site in the near future.
However, Reuters revealed that Toyota had not publicly announced its move of some of its production to the UK, with the brand not planning on doing so.
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The Toyota Corolla Touring Sports modelTOYOTAThe GR Corolla is a staple at the Motomachi production plant in Toyota City, but due to production already being at full capacity, the UK was able to fill that gap.
Roughly 25,000 cars were produced at the plant last year, with GR Corollas accounting for 8,000 of the total amount, data suggests.
In the US, Toyota plants have seen stronger demand for hybrids and other vehicles, "making it difficult for the automaker to shift production there," the sources said.
They added: "Whether exporting from Japan or Britain, Toyota plans to absorb any cost increases from tariffs through cost-cutting and other measures and will not raise prices."
Toyota has seen more interest in hybrid and electric vehicles across the US
TOYOTAThe price of the GR Corolla is around JP¥6million (£30,700), and despite more customers moving to electric and hybrid cars, interest in petrol and diesel sports cars remains strong.
Once the UK takes ownership of Toyota’s North America production line, the Motomachi plant will continue to produce vehicles for Japan and other overseas markets, the sources said.
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