
The 2000s marked a decade of both significant achievements and serious challenges for Toyota. In August 2000, the company began exporting the Prius, expanding its hybrid vehicle success beyond Japan. Toyota continued its growth by acquiring long-time partner Hino Motors in 2001, solidifying its presence in the commercial truck and bus market. That same year, Toyota entered Formula One racing, signaling its ambition in motorsport. In 2002, it formed a joint manufacturing venture with Citroën and Peugeot in France. To appeal to younger North American customers, Toyota introduced the Scion brand in 2003. By 2005, Toyota ranked eighth on Forbes’ 2000 list of the world's leading companies. Leadership also shifted that year, with Fujio Cho becoming chairman and Katsuaki Watanabe assuming the role of president.
Toyota’s expansion continued with the launch of the updated Tundra full-sized truck in 2007, produced in factories in Texas and Indiana. The 2007 Toyota Camry was named Motor Trend’s Car of the Year, highlighting Toyota’s continued success in the U.S. market. Toyota also began construction of two new factories in Woodstock, Ontario, and Blue Springs, Mississippi. By the first quarter of 2008, Toyota had become the world’s top automaker by sales volume.
However, the global financial crisis of 2008 brought severe challenges. For the first time in 70 years, Toyota forecasted an annual loss. In December 2008, it announced an 11-day shutdown of all Japanese plants to reduce production and unsold inventory.
Amid these challenges, Toyota expanded into South Korea in 2009, establishing an office and launching the Camry sedan, Camry hybrid, Prius, and RAV4. However, the company faced its most significant crisis from 2009 to 2011 with reports of unintended acceleration, resulting in the recall of approximately 9 million vehicles worldwide. The recalls aimed to address issues with floor mats trapping pedals and mechanical sticking of accelerator pedals. The crisis was linked to 37 fatalities and led to numerous lawsuits. Toyota paid a $1 billion class-action settlement, a $1.2 billion criminal penalty, and faced accusations of concealing safety defects to protect its reputation.
Amid the scandal, Katsuaki Watanabe stepped down as president, and on June 23, 2009, Akio Toyoda, grandson of Toyota’s founder Kiichiro Toyoda, was appointed president. Akio, who had been with Toyota since 1984, brought extensive experience in production, marketing, and product development. His promotion marked the return of the Toyoda family to Toyota's top leadership for the first time in a decade. Despite the challenges, Akio’s leadership set the stage for Toyota’s recovery and future resilience.