The second generation Toledo (Typ 1M) was introduced in 1998 and made its debut at the 1998 Paris Motor Show as a four-door notchback

Notchback

Notchback is a styling term describing a car body style, a variation of three-box styling where the third distinct volume or "box" is less pronounced — especially where the rear deck is short or where the rear window is upright...

 sedan. It was more rounded than the previous first generation shape and had a much more fluid design, although both were products of Giorgetto Giugiaro

Giorgetto Giugiaro

Giorgetto Giugiaro is an Italian automobile designer responsible equally for a stable of supercars and several of the most popular everyday vehicles driven today...

's Italdesign studio with the latest generation being influenced by SEAT's chief of exterior design Steve Lewis.
It shared components with both its Volkswagen

Volkswagen

Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...

 and Škoda

Škoda Auto

Škoda Auto , more commonly known as Škoda, is an automobile manufacturer based in the Czech Republic. Škoda became a wholly owned subsidiary of the Volkswagen Group in 2000, positioned as the entry brand to the group...

 PQ34 platform-mates - the Volkswagen Bora and the Škoda Octavia

Škoda Octavia

The Škoda Octavia is a small family car produced by Czech automaker Škoda Auto since 1996, its name revived from a model originally produced between 1959 and 1971. The current Octavia is available in five-door liftback and station wagon....

 - yet is the sportiest of the three.