World's largest car maker confirms it WILL build hot hatch in UK and invest £40million in a new assembly line
Toyota says it will manufacture the GR Corolla from Burnaston, Derbyshire in a bid to ramp up production.
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It follows reports that the car maker was planning to invest around £41 million into the new line.
Toyota has denied that the move is related to Trump's tariffs, which place a 25% import tax on cars from Japan compared to just 10% from the UK.
The announcement has further fulled speculation that the popular model, which is currently only available in specific markets, could soon be launched in Europe.
The GR Corolla is currently only available in Japan - and is exported to North America and certain other markets.
Prototypes were spotted being tested at Germany 's Nürburgring last year, leading to speculation of a launch according to Autocar.
However, a spokesperson suggested it was standard to test global products there - but did not deny the prospect of a European launch.
Toyota currently sells the GR Yaris and the GR Supra in Europe.
Yoshihiro Nakata, president and CEO of Toyota Motor Europe, said: "We are proud that TMUK, our first plant in Europe, has also been selected as the first overseas Toyota plant to produce GR vehicles, securing this expansion project for TGR worldwide.
"We very much appreciate the historical support and recognition of the United Kingdom and would like to continue to contribute to UK society as a 'Best in Town' company."
The Burnaston plant currently produces Toyota's Corolla hatchback and estate for British and European markets.
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But the proposed new investment could see production rates significantly boosted.
Previous Reuters reports suggest that it could give the plant a capacity of 10,000 cars per year.
The reports add that Toyota's Motomachi plant in Japan, which handles GR output, is currently at full capacity.
Burnaston built its five millionth car since opening in 1992 last year.
Toyota invested a staggering £240million to upgrade the Burnaston plant back in 2017.
Then Business and Energy Secretary Greg Clark said at the time: 'Our automotive sector is one of the most productive in the world and Toyota's decision to invest £240 million upgrading its Burnaston plant is a further boost to the UK auto sector.
"I also welcome the prospect of investment to take Toyota New Global Architecture into the supply chain.
"Toyota is one of the world's largest car producers and this inward investment underlines the company's faith in its employees and will help ensure the plant is well positioned for future Toyota models to be made in the UK.
"As we prepare to leave the EU, this Government is committed through our Industrial Strategy to ensuring the UK remains one of the best places in the world to do business and we are able to help businesses seize on economic opportunities.'
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