Rumors of a fire-breathing, manual transmission, all-wheel-drive Toyota GR Corolla Hatchback were reported by Car Sensor in Japan last week, brought stateside by James Gilboy at The Drive. Could we soon see a 297-horsepower turbocharged three-cylinder under the hood of the sporty-looking but mild-mannered Corolla on U.S. shores?

Rumor holds the GR Corolla could crib its engine, transmission and all-wheel-drive system from the internationally heralded GR Yaris. A highly capable Corolla being offered stateside might dull the pain of being snubbed from having the GR Yaris available to us, especially if the car receives a slight power bump over the Yaris as forecasted by Car Sensor.

The 306-horsepower Honda Civic Type R outmuscles the current GR’s powertrain. However, the front-drive Civic may be at a disadvantage when it comes to which wheels lay down power. Honda’s heritage lies in fast front-drive compacts; the GR Corolla pulls a page from Toyota’s all-wheel-drive history instead, reaching back to the sixth-generation E90 Corolla All-Trac. Car Sensor goes a step further to validate that historical connection, reporting that a separate GR Corolla Wagon is a distinct possibility, perhaps even with a hybrid system coupled to a slightly larger-displacement engine.

Let’s assume the GR Corolla Hatchback would share the same selectable drive modes available in the GR Yaris. The GR Yaris has an “advanced driving force system” utilizing an electronically controlled multi-plate clutch, which provides a certain amount of torque to the front and rear wheels based on the drive mode selected. In the normal driving setting, the engine’s torque is split conservatively with 60% in the front, and 40% in the rear. Once the selector is switched to sports mode, the GR Yaris switches to an aggressive 30% front, 70% rear split. Track mode divides the torque evenly with a 50/50 split. Torsen provides limited slip differentials in both the front and back of the GR Yaris, making the car ready for track events from rallycross to autocross.

TMGPS member Nathan Geer shared his thoughts on the GR Corolla’s potential: “I can’t wait for Toyota to release the details,” said Geer, the owner of a 2019 Corolla Hatchback finished in Blue Flame. “It should be the car that finally puts Toyota in the STi and Golf R playing field.”

Miles Wenzel is a manual enthusiast with a love for the great outdoors. Follow #DriveYourCars, a video guide for DIYers who wrench to drive and drive to live.