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Scion exec admits brand has too many dealerships, may contract network

Despite being conceived by corporate giant Toyota, Scion painstakingly built its reputation on being something of an offbeat, youth-minded brand, working hard to establish individualist, almost hipster-like credentials. So it comes as something of a surprise to hear WardsAuto report that Scion has a whopping 1,000 dealers across America - just 200 fewer than Toyota itself. This, despite a much smaller product portfolio and a sliver of the sales volume.
All those factors may explain why Bill Fay, US group vice president for Toyota, is admitting to the industry publication that its dealer network "might actually go down a little bit." As it stands, the volume end of the equation is probably an even bigger incentive - Scion's sales are way down from the salad days of the mid-2000s, when the brand had fewer models but sold more of them. With the (then) white-hot xB and tC models, Scion shifted 173,034 units in 2006, while Ward's notes the marque's 2013 sales are only at 41,261 units through July. In the story, AutoPacific analyst Dave Sullivan observes that other low-volume brands have far fewer dealer points, noting that Mini has just 115 dealer points and Infiniti has 200. By Sullivan's estimate, he would expect to see 350-500 Scion stores based on its sales figures.
Dealer question aside, the bigger issue is where the brand goes from here, and Fay admits Toyota is studying a number of different strategies, including possibly going "small-premium." Nothing is finalized, though according to Ward's, Fay discounts the idea that the FR-S - the brand's sales bright spot - will drive the brand to consider a more driver-oriented lineup.

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.

2016 Scion iA arrives with price tag 'in the $16,000 range'

The adorkable iA, Scion's first sedan, is likely to appeal to a number of customers who value efficiency, affordability and equipment. And because the iA is essentially a rebadged Mazda2 there should be some pep in this little guy's step. If you're wondering why Mazda would build a car for Toyota, volume is a big reason. 1,003 Toyota dealers have a Scion store, more than one-and-a-half times as many franchises as Mazda, and that translates into higher production numbers. Ignoring the rather tragic grille, the rest of the iA is actually a handsome little four-door, which makes sense, considering the amount of Mazda blood coursing through its veins. One need only compare the shots of the Scion, shown above, and the leaked images of the Thai-market 2 sedan to see the similarity. The headlights and taillights are identical in shape and similar in overall design, while both cars share Mazda's expressive Kodo character lines in the profile. While the 2 is cute and brawny, the iA looks a little sullen, with its catfish-mouth grille drooping low in front of the sloping hood. It's a similar story in the cabin, where Mazda's work is plain to see. The dash is crowned by an ample, standard seven-inch display, which is in turn controlled by either touch or the excellent dial-and-buttons input also found in the Mazda3 and Mazda6. Toyota's Entune system is conspicuous by its absence. A trio of knobs control the HVAC system, while a section of faux leather, complete with stitching, separates the tactile controls from the main display. The instrument cluster is home to a single binnacle, housing the speedometer. A pair of secondary displays feature a tachometer and other ancillary information. Considering that the interior and exterior are almost unchanged from the Mazda2, it's no surprise that the 1.5-liter four-cylinder is also common to both cars. In the iA the lump under the hood makes 106 horsepower, while the Euro-market 2 comes in three flavors – 75 horsepower, 95 hp and 115 hp (with the i-ELOOP system). The 1.5 is paired with either a six-speed manual or a six-speed automatic. Following the theme, the iA's chassis is largely identical to the new 2's. The front suspension is of the MacPherson strut variety, while a torsion-beam axle sits out back with rear drum brakes. The steering assist is electric, which contributes at least partially to the 33-mile-per-gallon city rating and 42-mpg highway.