The Toledo was built on top of the same platform as the Golf IV, the Bora (Jetta in the U.S.), and Skoda Octavia and tried to compete in the European compact-sedan segment.
Volkswagen tried to increase the product lineup for the Spanish brand SEAT and offered the Toledo as a lower-priced version of the Bora. But, while it sported the same PQ34 platform, it had a different design and lower-quality materials on the interior. But the car didn't really caught-up customers' imagination and was dismissed after seven years without a direct successor.
Sporting the rounded shapes influenced by the bio-design era, the Toledo appeared too late on the market to be considered a fierce competitor against French and Italian compact sedans. In addition, Ford's Focus already had the edge in the design segment with its edge-design styling. The Toledo sported a front fascia with narrow headlights, similar to those installed on the Leon. Up to the C-pillar, it used the same body panels as its sibling, and only the rear of the vehicle was different since it was a three-box sedan. At the back, the automaker's design department created wide taillights that were visually connected by a red trim mounted on the trunk's lid.
Inside, the cabin sported a dull but effective design. Everything was where customers expected it to be. It even featured a retractable cup holder above the stereo. In the instrument cluster, the automaker placed two large dials for the speedometer and tachometer that flanked an LCD for the onboard computer data. Above it, there were another two gauges for the fuel level and water temperature.
Under the hood, SEAT installed a wide choice of engines ranging between 100 PS and 180 PS (97 hp – 177 hp) paired with manual or automatic transmissions, depending on the version. Power went to the front wheels only.