Building the GR Corolla in the UK could save Toyota big bucks in tariffs
Toyota is in a hybrid kick. Sales are up, and the brand is leaning heavily into the gas-electric offerings. But that doesn’t mean it’s stagnation for the automaker’s other models. The angry little Toyota GR Corolla, for instance, is very much in demand for American buyers. So much so that Toyota is vying to invest $56 million in its Burnaston plant in the UK to meet car buyers’ wishes.
Toyota will invest $56 million in its Burnaston plant to ramp up production of the GR Corolla
Toyota plans to invest about 8 billion yen ($56 million) in Toyota Manufacturing UK. It’s all part of an effort to meet North American demand for the brand’s growly, corner-carving hot hatch, the Toyota GR Corolla. It makes sense, too; Toyota’s UK plant already produces the Corolla hatchback. However, the move to the UK could help Toyota sidestep some tariff costs.
According to Reuters, the focus of the cash influx is Toyota’s Burnaston plant in the English county of Derbyshire. Burnaston is a 600-acre production facility that currently rolls out around 150,000 cars every year. That is, until Toyota carries out its plans for the plant.
Part of that investment includes a dedicated assembly line for the Toyota GR Corolla at Burnaston. With the line in place and engineers from Japan getting production up to pace, Toyota envisions producing around 10,000 cars for export to the North American market every year. Should everything go according to plan, the plant could be hitting that number starting next summer.
The move shifts production of the hot hatch from the Motomachi plant in Toyota City, Japan. Therein lies the potential savings for the automaker. The Trump administration recently agreed to lessen auto import tariffs from 25% to 10%. But not for every importing country. No, this allowance is specifically for the UK and pertains to 100,000 vehicles.
As a result, getting the GR Corolla a British passport could land it in the lowered tariff figure. Japanese auto imports, on the other hand, are subject to the steeper 25% duty. Japan is, however, seeking to negotiate the removal or lowering of that tariff. In the meantime, though, cars from Burnaston could get the lower tariff treatment.
