Toyota has long been synonymous with reliability, but recent challenges threaten its iconic status. The brand dropped to third in Consumer Reports' 2025 rankings—a stark contrast to its usual top-tier performance. Subaru claimed the top spot, while Lexus (Toyota's luxury division) finished second, signaling a shift in consumer trust. This dip followed a series of recall issues, including 380,000 Tacoma trucks with faulty rear axles and GR Corolla models prone to fires. While Toyota's total recalls (3.2 million vehicles in 2023) lagged behind Ford's 12.9 million, the high-profile nature of its defects—engine failures and safety risks—undermined confidence.

A 2021 engine redesign for the Tundra and Lexus LX backfired, with metal shavings in twin-turbo V6 engines causing failures. Over 100,000 vehicles were recalled in 2024, exposing flaws in Toyota's typically robust manufacturing. These problems compounded dissatisfaction with redesigned models like the bZ4X, which scored poorly in reliability despite its electric promise. Consumer Reports noted Toyota had three underperforming models in 2024, compared to Subaru's single weak performer.

Beyond hardware, infotainment systems drew ire. Toyota's touchscreen interfaces, criticized for clunky controls and outdated design, contrast with rivals' seamless integration of Android Auto and Apple CarPlay. Recent software updates improved responsiveness, but the user experience still lags behind competitors. The Lexus brand, while benefiting from Toyota's engineering, faces similar criticism for its joystick-based controls.

Legal headaches emerged in 2026, as a Florida man sued Toyota for allegedly using driving data to inflate insurance rates. The case hinges on ambiguous privacy terms, echoing broader industry concerns about connected car data misuse. Toyota maintains compliance, but the lawsuit underscores growing scrutiny over driver privacy in an era of connected vehicles.

Quick Fact: Toyota faced 3.2 million vehicle recalls in 2023.