Zinger Key Points
- Toyota will invest $56 million in a U.K. line to ease pressure on its maxed-out Japan facility.
- The shift aims to cut delivery times for North America, with no price hikes despite potential tariff costs.
- Get stock picks, daily rankings, and pro-level trading tools in one powerful platform—now 60% off for Memorial Day.
Toyota Motor Corp. TM is reportedly moving part of its GR Corolla production to the United Kingdom to reduce delivery wait times in North America.
The automaker will invest approximately $56 million in a dedicated U.K. production line to serve the North American market, Reuters reported, citing sources familiar with the plan.
The shift aims to leverage excess capacity in the U.K. and ease pressure on Toyota’s Motomachi Plant in Japan, which is already running at full capacity.
The GR Corolla is built exclusively in Japan, where strong North American demand has led to extended delivery timelines. Last year, Motomachi produced 25,000 vehicles, including 8,000 GR Corollas.
According to Reuters, the decision is not linked to U.S. auto tariffs, though the Trump administration recently cut duties on British imports to 10% for up to 100,000 vehicles annually. Toyota plans to absorb any tariff-related costs without raising prices.
U.S. plants remain focused on hybrids and other high-demand models, limiting capacity for GR production. The GR Corolla, priced around 6 million yen or roughly $42,131.87 (about double the standard model), is manually assembled and requires months for delivery, the report said.
The GR series, developed under Chairman Akio Toyoda’s racing vision, includes high-performance vehicles like the GR Corolla and GR Yaris. While niche in volume, these vehicles offer higher margins and a dedicated enthusiast following.
Toyota will continue building GR models for Japan and other global markets at Motomachi while the U.K. line supplies North America.
Price Action: TM shares are trading higher by 1.11% to $184.32 premarket at last check Tuesday.
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