A Success Failing Overseas: Toyota Yaris

Logan Barth
The Ends of Globalization
8 min readMar 28, 2022

“There was an economy of design to the Yaris that was in stark contrast to the fussiness of many other small cars” — Alisdar Suttie, Motoring Journalist

The Toyota Yaris, this sharply contrasting vehicle at-hand, was released by the Japanese company in 1998. Immediately, it spread beyond the East Asian country throughout Europe, Asia, Australia, eventually arriving in the United States in 1999. While the Yaris was a success in America, sales decreased significantly, resulting in Toyota pulling the model from North American markets in 2020. On the other hand, the Toyota Yaris is one of the most popular vehicles in Japan. The Japanese-made Toyota Yaris’ failure in America is as a result of American prioritization of the appearance of prosperity over the practicality of the object, but also suggests that the success of foreign budget items in America is parallel to the rise of economic issues. While some may say that the advanced technological features of the Yaris satisfy some of the American desire for the appearance of wealth, American prosperity depends more on the characteristics seen by the general public, such as exterior design and size of an object.

The Yaris was built for the economic situation of the time period: The Lost Decades. This ominous and gloomy name describes the economic stagnation and price deflation between 1991 and 2001 (Halton). This was a time of slow economic growth, impacting not only big corporations in Japan, but also made difficult financial situations for the citizens of Japan. It is vital to understand the context of the time in which the Toyota Yaris was introduced to the world: a time in which the economic situation of Japan was poor. Thus, Toyota had to build a car that adapted to this.

The Yaris was not made to impress in terms of a loud engine or flashy exterior, but more because of its cheap cost to operate. It excels in the realm of fuel economy. Not only can it get 40 miles to a gallon, it also has a high driving range (Sessions). At the time in which it was built, Japanese owners were not looking for a car that drained them of their funds. They were looking for a car that did what a vehicle is supposed to do: take someone from Point A to Point B, all while doing it in an affordable manner. The engine specifics and even the small size contribute to the low costs for the vehicle. This attests to the strong cultural focus of practicality in Japan. From the purchase of a product to the actual usage, the practicality must be analyzed. Is this product going to help me in a positive way? Am I able to afford this product, along with my other expenses? Especially at the time of the Lost Decades, this cultural value was at the forefront of Japanese corporations and individual consumers. The Yaris, through its phenomenal fuel economy, allowed it to prosper.

Reliability is another key factor of the Yaris’ success in Japan. According to RepairPal, the Toyota Yaris ranks 1st out of 21 subcompact vehicles in terms of reliability. Reliability factors in how long the vehicle lasts for, how many times it breaks down, how many times it needs to be taken into the shop, costs of repairs, etc. The common denominator in all of that is cost. If it lasts for 200,000 miles, then you do not need to buy another car, saving money. If it does not break down, you do not need to pay for repairs, saving money. Knowing this is one of the most reliable subcompact vehicles, the costs for the Yaris are very low. This contributes to the success in Japan. When costs are low, it is more practical to fit a car into a personal budget. It is practical to have a car that you can afford.

While some may say that since the Lost Decades are over, the fuel economy and reliability of the Yaris is irrelevant to its success at the moment. But, this reasoning is filled with simple generalizations. The fact that the Yaris remains popular in Japan (currently the top sold vehicle in all of Japan) actually attests to the Japanese focus on practicality. The Yaris lacks frills: it does not have fancy tech such as self-driving capability, its exterior and interior is not flashy, it is quite tiny, it does not have great acceleration. That is not to say that it does not have some advanced tech in, but it is certainly not the top of its class. But, the one thing that remains over the last 20 years is that its fuel economy is the best in its class. It is marketed as a vehicle that will be cheap to maintain, in terms of gas, repairs, etc. Thus, this vehicle marketed as practical tells us that Japanese culture’s focus on practicality influences the success of this vehicle in Japan.

The vehicle is clearly a success in Japan, catering to the cultural focus on practicality. It is the top selling vehicle in all of Japan, so what is the reason for its failure in the US? It was in the US market for some time, but after 2008, sales dropped until Toyota pulled the Yaris from all North American markets. To understand more about the cause of this, it is significant to discuss “American Pride”. American Pride can be expressed as having an American flag on your front lawn or attaching it to your car, but it also means embodying the spirit of American culture.

American Pride can be found in the obession that Americans have with big things: whether that be with food, objects, houses. Cars are no outlier to this pattern. Large vehicles actually account for over 60% of cars sales in America. George Kennedy explains this trend saying that “Following World War II, there was this feeling of American [Pride] and our cars got very large”. Americans want something like SUVs, trucks, because it gives off an appearance of prosperity. Typically, larger items are often seen as more prosperous in America. In making this case, I am not saying that prosperity automatically means the materialistic value of something. While it does mean that in many cases, prosperity can often be seen as prosperity in terms of spirit, pride, and passion. Larger vehicles convey all of those things–especially when analyzing Americans’ normality of driving long distances. The mere imagery of a sizely truck hauling down the road conveys prosperity in terms of “dominating the road”. Road trips are a very American concept, tying the appearance of prosperity back to American Pride.

Because of this obsession with larger cars, due to the appearance of prosperity, the Toyota Yaris’ small, muted design just does not appeal to Americans. It does not exude the prosperity that many in America strive for, and its size is one of the reasons for its failure in America. This is not to say that no Americans think that smaller cars give off prosperity and American “pride,” but knowing that the majority of Americans prefer larger cars helps contextualize the argument.

Besides the size of the car itself, Americans just do not like the actual design of Yaris. One American commented on an article announcing the end of the Yaris in North America, saying that “I guarantee that horrible fish grill contributed to its crappy sales” (Nichols). This comment was not alone in its sentiments: many compared the exterior features of the vehicle to that of a fish or bug. In this comment, the author is specifically referring to the grill, which is the front of the vehicle. Like stated above, the Yaris was not built to impress: it was built to be affordable and practical for a Japanese market, and that eventually extended to America. But, many Americans want a car that looks visually appealing on the outside, which to many, exudes prosperity. Cars that look “fancy” on the outside are often more expensive, making it clear to the thousands of other drivers on the road that the person inside that car has prosperity. American focus on the appearance of prosperity is a cultural value for many, and the bland-looking–and to many–terribly ugly Yaris just did not live up to the American’s high bar for exterior design of a vehicle, thus contributing to its failure in America.

While the appearance of prosperity is an important American cultural value, practicality is also quite important, especially depending on the current economic situation. Many Americans have a personal focus on affordability, and the Yaris appeals to them in that sense as it has incredible gas mileage and lasts many years. It is for this very reason that the Yaris was popular in 2008. During the financial crisis of 2007–2008, many Americans could only afford the cheapest cars, which resulted in a boom in Yaris’ sales. The economic crisis caused unemployment, evictions, and foreclosures to skyrocket. Many businesses had to close down. People at this time just did not have the ability to satisfy their want for a fancy, prosperous car. They had to settle for a car that adapted to the economic situation of the time period, resulting in the rise in sales of the Yaris. Much like becoming successful in The Lost Decades in Japan, this was clearly a car built for economic crises. Even though sales continued to boom in Japan after the crisis was over, America was a different story.

The sales plummeted around 2009. And, it is not because Americans are not focused on practicality. It is more that practicality is one element weighted against many others, including the appearance of prosperity. For some Americans, practicality is weighed higher than the appearance of prosperity, while it is flipped for other Americans. And, there are other cars in America that look beautiful and are affordable, satisfying both of those values. The Yaris succeeds in the practicality realm, which is why it is such an appeal to Japanese people who weigh that value high. But, in America, a country that, on average, weighs other values higher, like the appearance of prosperity, the Yaris flopped. The economic situation was not as pressing, which allowed Americans to weigh these two cultural values. This goes to show the success of these “budget” items originating from overseas depends heavily on the economic situation of the time period, especially in an American context where the values of the appearance of prosperity compete with practicality.

Works Cited

Burt, Matt. “How the Original Yaris Was a Game-Changer in 1999.” Toyota UK Magazine, 2 May 2021, mag.toyota.co.uk/original-yaris-game-changer-1999.

Demandt, Bart. “Toyota Yaris U.S Sales Figures.” Carsalesbase.Com, 19 Mar. 2020, carsalesbase.com/us-toyota-yaris.

Halton, Clay. “Lost Decade.” Investopedia, 28 Sept. 2021, www.investopedia.com/terms/l/lost-decade.asp.

Nichols, Beth. “Toyota Confirms Yaris Sedan, Hatchback Are Dead to U.S.” Car and Driver, 29 Nov. 2021, www.caranddriver.com/news/a32958759/toyota-confirms-yaris-sedan-hatchback-are-dead-to-us.

Sessions, Ron. “2020 Toyota Yaris Review.” J.D. Power, www.jdpower.com/cars/expert-reviews/2020-toyota-yaris-review. Accessed 31 Mar. 2022.

“Toyota Yaris Reliability Rating.” Repair Pal, www.repairpal.com/reliability/toyota/yaris. Accessed 30 Mar. 2022.

Yiyi, Zhang. “Why Are Small-Engine Cars So Popular in Japan? | News | Sakura Science Club.” Japan Science and Technology Agency, www. ssp.jst.go.jp/sns/news/sat/science20/04_3.html. Accessed 31 Mar. 2022.

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