Exclusive-Toyota to move some GR Corolla production to Britain, sources say

By Maki Shiraki

TOKYO (Reuters) -Toyota plans to move some production of its GR Corolla sports car to Britain and will spend around $56 million on a dedicated line there to build exports for North America, according to two people familiar with the matter.

By shifting some production from Japan, Toyota aims to use excess capacity in Britain to help it cut delivery wait times for the car, said the people, who spoke on condition of anonymity. The move was not in reaction to President Donald Trump's tariffs on automobile imports, they said.

The Trump administration agreed this month to cut tariffs on auto imports from Britain to 10% for up to 100,000 vehicles a year. Japan, which has been hit with 25% auto tariffs, is seeking to have them repealed.

Toyota produces the GR Corolla in Japan for the Japanese market and for export to North America and other markets. But it hasn't been able to keep up with North American demand, given keen interest in the gasoline-powered car from engine enthusiasts, the people said.

It will set up a production line at the Burnaston plant in Derbyshire and invest around 8 billion yen ($56 million) to produce 10,000 cars annually for export to North America from the middle of 2026, according to the people.

Burnaston began operations in 1992 and possesses advanced production technology. It has suffered a decline in production since Brexit, said the people. The plant already produces the Corolla GR's base model, the Corolla hatchback, making it a natural choice, one of the people said.

Engineers will be temporarily dispatched from Japan to share production technology and other expertise, the people said.

In response to Reuters questions, Toyota said it was always looking for ways to optimise production. The report was not something the company had publicly announced, it said.

($1 = 142.6100 yen)

(Reporting by Maki Shiraki; Writing by Daniel Leussink; Editing by David Dolan)