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Scion pondering move upmarket?

Scion is simultaneously celebrating its ten-year anniversary with the 10 Series models and trying to figure out what to do with itself over the next ten years. Once a go-to consideration for young, first-time buyers who wanted something cool and different, in 2013 it has a model everyone is still talking about in the FR-S, a model few are still talking about in the iQ, and three models in between in the tC, xB and xD that make everyone wonder, "What happened?"
Automotive News spoke to Toyota's North American CEO, Jim Lentz - he was the VP in charge of Scion when it launched - about the options, and Lentz said one of them could be a move upmarket to challenge the established luxury brands that are moving downmarket. "There's going to be a big need in the $25,000 range for a fun-to-drive, nice-looking, value-oriented product," he said, and the FR-S, which starts at $25,255, could provide the platform for Scion to climb up a notch or two in price and perception. An idea like this could conceivably work in tandem with a proposal to move entry-level Scion products over to the Toyota brand - but remember, this is all just ideas on a whiteboard at the moment.
As opposed to an "entry-luxury fighter," the brand could swing back to the other option that was considered when it was formed, directly challenging the Korean makes that have usurped its cachet with first-time buyers. Lentz said Scion could go either way, and the tone of the piece seems to indicate that the final direction is still a ways away from being resolved.

Scion styles up the FR-S with 'Release Series 2.0'

Scion's long-running Release Series of special edition vehicles has just added its second FR-S, with the new Release Series 2.0. While the first special edition FR-S, which debuted at the 2014 New York Auto Show, placed a serious emphasis on sportiness, the second is a more balanced, perhaps more mature special edition. Release Series 1.0 had loud yellow paint, a lowered ride height, and chunky 18-inch TRD wheels on low-profile tires. The new RS 2.0 changes things up: The ride height appears unchanged. In fact, there doesn't appear to be any suspension upgrade in play, period. And while the wheels are still painted black, these 17s ride on slightly more reasonable 45-series rubber, rather than the 40-series tires used on the 2014 model. There's still an upgraded body kit, but combined with the Lunar Storm White hue, it's a lot more subtle than last year's aggressive setup and Yuzu Yellow paint. Where Scion didn't do much to the FR-S's interior for the 2014 special edition, the RS 2.0 gets luxed up with heated, two-tone Alcantara/leather seats. The black-and-camel color scheme works well here, appearing not just on the seats but around the steering wheel, doors, and dash. All 1,000 special editions will come with HID headlights, LED running lights, push-button start, and dual-zone climate control. Prices for the six-speed manual model start at $30,305, while the automatic adds $1,100, just like it does on the standard FR-S. Read on for the official press release from Toyota. SCION PAIRS SPORTS AND STYLE FOR 2016 FR-S RELEASE SERIES 2.0 TORRANCE, Calif., (Oct. 29, 2015) – Drivers of the 2016 Scion FR-S Release Series 2.0 will look better than ever in the most stylish version of the sports car ever offered. The new FR-S Release Series 2.0 comes with luxurious appointments and premium features, and with just 1,000 vehicles available, it's the most elusive and exclusive Scion Release Series yet. The interior creates the lap of luxury with heated seats in black Alcantara and leather with camel-colored accents. The same black and camel theme continues to the leather-trimmed steering wheel while the shift knob and parking brake lever are covered in black leather. Camel trim also appears on the door armrest and the upper door trim while the center armrest and knee pads are black. Camel accent stitching is prominent throughout the interior and embroidered on the dash insert is the release series badge, sequentially numbered from 1 to 1000.

Scion was slain by Toyota, not the Great Recession

Scion didn't have to go down like this. Through the magic of hindsight and hubris, it's easier to see what went wrong. And what might have been. What the industry should understand is this: Scion wasn't a losing proposition from the get-go. Its death is due to negligence and apathy. This is more than just the failure of a sub-brand. It's the failure of a company to deliver new and compelling products over an extended period of time. Toyota will point to the Great Recession as the reason it hedged its bets and withdrew funding for new vehicles, instead of using that as an opportunity to redouble efforts. This was as good as a death warrant, although myopically no one realized it at the time. Sadly, GM's Saturn experiment was a road map for this exact form of failure. No one at Toyota seemed to think the Saturn experience was worth protecting their experimental brand from. Or they weren't heard. Brands live and die on product. Somehow, Scion convinced itself that its real success metric was a youthful demographic of buyers. It seems like this was used to gauge the overall health of the brand. Look at the aging and uncompetitive tC, which Scion proudly noted had a 29-year-old average buyer. That fails to take into account its lack of curb appeal and flagging sales. Who cares if the declining number of people buying your cars are younger? Toyota is going to kill the tC thirteen years [And two indifferent generations ... - Ed.] after it was introduced. In that time, Honda has come out with three entirely new generations of the Civic. Scion wasn't a losing proposition from the get-go. Its death is due to negligence and apathy. At launch, the brand could have gone a few different ways. The xB was plucky, interesting, and useful – a tough mix of ephemeral characteristics – but the xA didn't offer much except a thin veneer of self-consciously applied attitude. That's ok; it was cute. Enter the tC, which managed to combine sporty pretensions with decent cost. It took on the Civic Coupe in the contest for coolness, and usually managed to win. More importantly, an explicit brand value early on was a desire to avoid second generations of any of its models, promising a continually evolving and fresh lineup. At this point, the road splits. Down one lane lies the Scion that could have been. After a short but reasonable product lifecycle, it would have renewed the entire lineup.