Why did the Toyota Crown fail in the US?

The Crown underperformed in the U.S. market due to a combination of misaligned positioning, pricing, and marketing, along with limited dealer support and strong competition. In short, it did not find a clear, compelling audience among American buyers. This article breaks down the factors behind that outcome and what it reveals about launches of heritage-nameplate models in a crowded market.

Launch, positioning, and market fit

The Crown’s entry into the U.S. market was framed as a bold, premium sedan intended to sit above the Camry in price and stature. It aimed to channel Japanese heritage into a modern, tech-forward package. Yet several tensions emerged that limited its appeal to American shoppers.

Branding and messaging

Americans largely perceived the Crown as a niche, Japan-specific badge rather than a familiar Toyota product. The name conjures a long-running, luxury-oriented lineage that didn’t clearly translate into a relatable value proposition for most U.S. buyers, who were more accustomed to models like the Lexus ES or Acura TLX.

Pricing and value proposition

At launch, Crown carried a price premium that placed it close to or above established luxury sedans while not delivering a distinctly compelling advantage in performance, interior refinement, or brand cachet compared with Lexus or German rivals. That made the Crown harder to justify for many mainstream Toyota customers and luxury-seeking shoppers alike.

Marketing and dealer support

Marketing efforts were scoped and incremental rather than expansive, and the Crown’s dealer network did not receive the same ramp-up in training and inventory as more established nameplates. Limited availability and inconsistent messaging hindered word-of-mouth momentum critical for a new-to-market model.

These elements collectively contributed to a lack of clear consumer pull for the Crown in a market already saturated with premium sedans and crossovers.

Market barriers and consumer perception

Beyond branding and price, broader market dynamics played a critical role. The Crown faced a landscape where buyers leaned toward recognizable comfort and proven value, particularly in a mid-size sedan segment that blends practicality with luxury cues. The following factors illustrate how those dynamics affected reception.

• Competition from established players: The Crown faced stiff competition from the Lexus ES, Acura TLX, Genesis G80, and other premium sedans that already had solid reputations, dealer support, and a longer track record in the U.S.


• Limited differentiation: While the Crown offered modern tech and a distinct look, its overall package did not present enough differentiation in ride, interior ambiance, or driver engagement to tilt buyers away from familiar alternatives.


• Market expectations for a Toyota sedan: Many shoppers categorized the Crown more as a Toyota—even as a premium variant—rather than a true rival to more luxury-focused brands, dampening perceived value.


• Supply and availability: In its early years, production and allocation constraints limited test-drive opportunities and showroom exposure, hampering trial and conversion rates.


• Consumer perception of heritage branding: Lexus and Toyota’s broader luxury drift benefited from clear branding hierarchies; Crown’s heritage branding didn’t align neatly with those expectations for a mainstream-to-luxury buyer in the U.S.

These market dynamics reinforced the challenge of gaining momentum for the Crown against well-established alternatives with proven U.S. market footprints.

Competitive landscape and consumer preferences

Understanding why the Crown struggled requires looking at consumer preferences and how competing vehicles were positioned. The Crown’s attributes often fit a niche that wasn’t large enough to sustain strong volume, given the alternatives already available at similar or lower price points.

1. Established luxury sedans offered stronger brand perception and dealer networks, making it harder for a newcomer with heritage ties to break through.


2. buyers often prioritized known resale value and reliability psychologically associated with brand familiarity, which helped rivals build trust faster.


3. The Crown’s design language, while bold, did not universally resonate with U.S. buyers seeking either conventional luxury or sportier dynamics in this segment.


4. In a market increasingly moving toward SUVs and crossover utility, sedans faced ongoing headwinds; a new sedan with a premium badge needed a decisive advantage to stand out.


5. Dealer incentives and financing options did not compensate for the gaps in branding and market perception, dampening overall appeal.

Taken together, these market and competitive dynamics help explain why the Crown struggled to gain a foothold despite solid Toyota engineering and modern hybrid technology.

What could have changed the outcome

Several hypothetical strategies might have improved the Crown’s odds in the U.S., but each would have required a coordinated, sustained push across pricing, marketing, and dealer operations.

1. Sharper brand positioning: Treat the Crown as a distinct, clearly defined alternative to existing Lexus and Toyota sedans, with a messaging strategy that emphasizes unique luxury cues, performance, and customer experience.


2. More compelling value: Reassess price points or introduce package selections that clearly outshine competitors in key areas such as interior quality, technology, and warranty/ownership costs.


3. Broader dealer and service support: Ensure ample inventory, standardized training, and aggressive test-drive opportunities to build familiarity and confidence among buyers.


4. Targeted marketing campaigns: Invest in experiences and campaigns that connect Crown’s heritage with modern conveniences, appealing to both traditional buyers and new entrants to the luxury segment.


5. Product diversification: Offer trim levels or variants that appeal to different buyer personas (tech-forward buyers, luxury-focused buyers, etc.) to broaden appeal without diluting brand identity.

Implementing these changes would require a clear, long-term commitment and a favorable market window, but they illustrate a path that some observers believe could have improved Crown’s standing in the United States.

Summary

In the end, the Toyota Crown’s U.S. experience underscored the difficulty of introducing a heritage-nameplate into a mature, highly competitive market without a compelling, well-communicated value proposition. Branding misalignment, pricing that didn’t clearly outpace rivals, limited marketing reach, and competition from established luxury sedans all contributed to a lukewarm reception. While the Crown showcased strong engineering and modern tech, those strengths did not translate into sustained U.S. market momentum in its initial run. The episode offers a case study in how heritage branding, pricing strategy, and market positioning interact when a legacy model is transplanted into a different consumer environment.

Why was Toyota's first U.S. car such a failure?

Toyota simply did not design the car for U.S. highways. Toyota admits “problems, including a lack of output while traveling at high speeds, inadequate high-speed stability, extreme noise and vibration, abnormal vibration and breakage of parts due to deformation, occurred.” Top speed was just 75 mph.

What is the most unreliable Toyota model?

The most unreliable Toyota models are often specific generations or years, with common issues including the 2010 Toyota Prius (hybrid system glitches, brake issues), the 2007 Toyota Camry and 2007 RAV4 (excessive oil consumption in the V6 engine), and certain Corolla models with CVTs (2014-2017) (transmission problems due to software and design issues). Older models like the Previa and certain RAV4/Corolla models from the early 2000s also have reports of specific problems like turbo failure and transmission issues, respectively. 
Most frequently cited unreliable models 

• 2010 Toyota Prius: Prone to a range of issues, including software glitches in the hybrid system, problems with the hybrid battery, and issues with the brake pressure accumulator, which led to a recall. 
• 2007 Toyota Camry: The 3.5L V6 engine in this model was known for excessive oil consumption. It also had a major recall due to a defect with the floor mats that could cause the gas pedal to get stuck. 
• 2007 RAV4: Similar to the 2007 Camry, this model also had issues with the 3.5L V6 engine's oil consumption. 
• 2014-2017 Toyota Corolla (with CVT): These models experienced problems with their Continuously Variable Transmissions (CVTs), including shuddering, hesitation, and eventual failure, largely due to software calibration and potential issues with the steel belt system. 
• 2009 Toyota Corolla: This model year is frequently mentioned for potential transmission problems. 
• 1997 Toyota Previa: Known for poor performance and frequent turbo failures. 

Key issues to be aware of

• Oil Consumption: The 3.5L V6 engine found in models like the 2007 Camry and RAV4 is known for consuming excessive amounts of oil. 
• CVT Transmission Problems: Certain Corolla and RAV4 models from 2014 to 2017 with CVTs had software and design issues that could lead to poor performance and premature failure. Regular fluid changes are essential for these vehicles. 
• Hybrid System Issues: The third-generation Prius, particularly the 2010 model, had several recall-worthy issues with its hybrid system, including problems with the brake pressure accumulator and a software glitch. 

What to do if you own one of these models

• Check for Recalls: Visit the manufacturer's website or a third-party site like the NHTSA to check if any recalls apply to your specific vehicle and ensure all have been completed.
• Follow Maintenance Schedules: Adhere to the recommended maintenance schedule, especially for things like CVT fluid changes, which are often overlooked but critical for the longevity of those transmissions. 
• Be Proactive with Symptoms: If you notice any symptoms like hesitation, shuddering, warning lights, or excessive oil consumption, have a qualified mechanic inspect the vehicle immediately. 

Is a Toyota Crown a reliable car?

The Toyota Crown is considered a reliable vehicle with a predicted reliability score of 81-82 out of 100 from organizations like J.D. Power and U.S. News & World Report. It generally has lower maintenance costs than the average sedan and is expected to be more reliable than the average new car, though some specific complaints include interior noises and leaks. The hybrid powertrain is built with a nickel-metal hydride battery, known for its durability. 
This video discusses the reliability of the Toyota Crown and its hybrid system: 56sRaiti's RidesYouTube · Jul 15, 2025
Reliability ratings and scores

• Great reliability: Scores like 81 and 82 out of 100 from J.D. Power and U.S. News & World Report indicate a "Great" reliability rating. 
• Lower maintenance costs: The estimated 10-year maintenance and repair cost of about $4,895 is lower than the industry average for similar sedans, with a lower chance of needing a major repair. 
• Positive consumer feedback: Some consumer reviews mention the car's durability and a positive experience with a warranty covering major repairs. 
• Predictive reliability: Consumer Reports predicts the 2025 model will be more reliable than average, based on 2023 and 2024 model year data. 

Potential issues reported

• Noise and leaks: Some owners have reported issues with interior noises, such as rattles, squeaks, and wind noise, as well as air and water leaks around seals and weather stripping.
• Interior noise: At least one reviewer noted the interior was noisier than a Toyota Camry. 

Hybrid system

• Durable battery: The hybrid system uses a durable and reliable nickel-metal hydride battery pack. 
• Reliable components: The hybrid powertrain has been noted by some as being exceptionally reliable. 

Why is the Toyota Crown not selling?

The Toyota Crown is not selling well due to its awkward market position between a sedan and an SUV, a high price point for a mainstream-badged vehicle, and a lack of consumer familiarity with the model in the North American market. The vehicle replaced the larger, traditional Avalon, but its lifted, crossover-like sedan style doesn't fit neatly into buyer preferences, which have shifted heavily towards conventional SUVs. 
Key reasons for low sales

• Confusing market segment: The Crown has a unique design that combines sedan proportions with a higher, crossover-like stance, which creates an identity crisis in a market that is largely divided between traditional sedans and SUVs. 
• High price point: The 2024 model starts at over $40,000$ 40 comma 000$40,000, and some consumers are hesitant to spend this much on a car with a Toyota badge, especially when compared to more established luxury brands or more familiar Toyota models. 
• Replaced a declining segment: The Crown took the place of the Avalon, a large sedan that was already experiencing declining sales due to the market's shift to SUVs and crossovers. 
• Lack of consumer familiarity: The Crown was not sold in the US for decades, so the nameplate lacks the brand recognition and history that might have helped it succeed like some other revived models have. 
• Competition: It faces strong competition from both traditional sedans and a vast number of SUVs and crossovers already available in the market. 
• Inconsistent branding: Toyota's attempts to position the Crown as a more interesting and unique vehicle may not resonate with mainstream buyers who are more accustomed to the brand's conventional offerings.