Toyota Plans to Shift Some GR Corolla Production to the UK

Reuters reports that Toyota intends to invest $56 million to establish a dedicated production line in the UK for exporting the GR Corolla to North America. Sources indicate that this move is not related to tariffs but is primarily driven by Toyota's desire to utilize excess capacity in the UK to shorten delivery times.
The UK has become the first country to strike a trade deal with the US since the announcement of reciprocal tariff policies. The Trump administration has agreed to reduce tariffs on cars imported from the UK to 10% (with a quota of 100,000 vehicles). Japan currently still faces a 25% automotive tariff and is actively negotiating with the US.
Toyota currently primarily produces the GR Corolla in Japan. Sources reveal that due to the model's popularity among petrol engine enthusiasts, it is in high demand in North America, and the current supply is insufficient to meet that demand.
According to sources, Toyota will establish the production line at its Burnaston plant in Derbyshire, UK, investing approximately 8 billion yen (around $56 million). The plan is to begin producing 10,000 vehicles annually for export to North America from the middle of 2026. Toyota will send engineers from Japan to share production technology and other expertise.
The Burnaston plant has been in operation since 1992. However, production at the plant has been declining since the UK's departure from the European Union. Sources revealed that the plant already produces the base model of the Corolla GR, the Corolla Hatchback.