Toyota is making a big move. The company plans to shift some of its GR Corolla sportscar production from Japan to the UK. This change will help them reduce delivery times for customers in North America and better use the extra space available at their UK factory.
A New Home for the GR Corolla
Toyota will build a special production line at its Burnaston plant in Derbyshire. This plant, which opened in 1992, already makes the regular Corolla hatchback. That makes it easier to add the sportscar version to the lineup.
To get things started, Toyota will invest around 8 billion yen (about £41 million). Skilled engineers from Japan will temporarily work at the UK plant to train staff and set things up. The goal is to make about 10,000 GR Corollas each year, mainly for export to the US and Canada. Production is expected to start in the middle of next year.
What’s Driving This Change?
Sportscar fans in North America really love the GR Corolla. Toyota wants to keep up with that demand. Plus, a recent trade deal between the UK and the US has helped sweeten the deal. Under the agreement, tariffs on UK car imports to the US have been cut from 25% to 10% on up to 100,000 vehicles a year. That’s a big help for Toyota.
Meanwhile, Japan is still trying to negotiate lower tariffs with the US, but progress has been slow. So, producing some cars in the UK now makes more sense for Toyota.
Toyota’s Japan Plant Is Full
Back in Japan, Toyota’s Motomachi plant—where the GR Corolla is currently built—is already running at full capacity. Last year, the plant produced 25,000 vehicles, including about 8,000 GR Corollas. With no room to grow there, moving some production to the UK was a logical step.
A Boost for the UK Auto Industry
The UK’s car industry has had a tough time recently. Some carmakers have paused investments or even closed plants. For example, in November, Stellantis (which owns Vauxhall) announced plans to shut its Luton van factory, risking 1,100 jobs. In February, BMW paused a £600 million investment in a Mini plant near Oxford.
So, Toyota’s move brings a much-needed lift to the sector. It shows that the UK still has potential in global car manufacturing, especially when trade conditions are favorable.
What About US Plants and Tariffs?
Toyota’s US factories are mostly focused on hybrids and other vehicles, so they don’t have room for the GR Corolla. The company says it will manage the costs linked to previous US tariff policies through internal savings. That way, they hope to keep car prices steady for buyers.
This move gives Toyota more flexibility and helps them stay competitive in a fast-changing market.
Adapted for www.shiportrade.com.
News originally published by https://www.theguardian.com/business/2025/may/27/toyota-to-move-some-gr-corolla-production-to-uk-from-japan.
