Toyota’s hot hatch for the North American market may turn out to be pretty good after all. New sources have (once again) reported that the upcoming GR Corolla will be offered with a manual transmission, wider wheel arches, and the engine from the enviable GR Yaris. That’s according to an unnamed source from Toyota’s U.S. dealer network who spoke to The Drive. They indicate that the GR Corolla was shown off at a private preview event in Las Vegas late last year.

Although the car was still camouflaged, much like the teasers we’ve seen so far, it is said to have featured a turbocharged three-cylinder engine, a manual gearbox, mechanical all-wheel-drive and a wider body. The source could provide no further specs but did suggest that Toyota was hoping to unveil the car by the end of 2022, though that date was not set in stone.

Earlier reports suggest that the GR Corolla will have more power than the GR Yaris, despite sharing an engine with it, which makes sense given the extra size. That will mean that the car will certainly get more than 257 hp and may make more than the 268 hp the GR Yaris is offered with in some markets.

Toyota is planning to unveil an even hotter GR Yaris this year and previous reports suggested power for the Corolla could reach 296 hp, but recent teasers have hinted at the engine making 268 hp. The AWD drive system in the GR Corolla will reportedly come straight out of the GR Yaris, meaning that it will have a center differential with varying torque split – and, if the GR Yaris is anything to go by, perhaps (optional) locking front and rear differentials too. Rumors from Japan suggest prices will start at US$ 30,000, which would be pretty competitive, but let’s not get our hopes too high before Toyota unveils the actual car.