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Toyota preparing Scion-badged Nissan Juke fighter

As we've said on multiple occasions, the sub-compact crossover market is The Next Big Thing™. With that in mind, Toyota's lack of a competitor to the new breed of super-small, super-cute crossovers like the Nissan Juke, Honda HR-V, Mazda CX-3, and Jeep Renegade has been especially glaring. But as these photos show, the hole in the Japanese giant's lineup could soon be filled. Our spies captured this heavily disguised prototype testing in the deserts of the American southwest, signaling that Toyota is preparing to wade into the Nissan Juke's space by offering a tiny, but very heavily styled crossover of its own. Our spy photographers call the cute ute's look "aggressive," citing inspiration from the Toyota C-HR concept from the 2014 Paris Motor Show. Based on the meaty wheels and tires and what we can see through the camo, we're inclined to agree with their assessment. Underneath that sheet metal, we're told the new car rides on Toyota's new NGA platform. Like the Juke, a four-cylinder engine and continuously variable transmission will be on offer, although there's no telling whether Toyota will follow its rival's enthusiast beat and offer a six-speed manual version. What we find most interesting about all of this conjecture, though, is what it means for Scion, rather than its parent. Introducing a small crossover is the next logical step for Toyota's troubled sub-brand, and would serve as a delectable followup to the recently released iA sedan and iM hatch. Such a three-model lineup, when combined with the enthusiast-oriented FR-S, would transform Scion into a force to be reckoned with in the entry level space. Supporting this conjecture isn't too hard, either. As the spy photos show, this camo'd tester is being supported by a xB, the closest thing Scion (or its parent company, for that matter) have to a sub-compact CUV. It's unclear just when this new model will make its debut, but if Toyota hopes to make inroads into this popular new segment, this CUV will need to arrive before its extremely competent rivals can establish a solid foothold. Related Video:

2016 Scion FR-S gets slight price increase, updates

Scion has bumped up the starting price of its rear-drive FR-S for the 2016 model year, although as the manufacturer tells it, an improved interior and more standard equipment makes the extra cost easier to bear. The FR-S with the six-speed manual has gone from $24,900 to $25,305, while the automatic's former $26,000 entry price has received an identical $405 bump. Those prices do not include a $770 destination charge. Offsetting the price increase is a new audio interface with a standard seven-inch touchscreen display and integrated rear-view camera. Scion's designers also touched up the cabin, adding bright silver accents throughout, while the customers can opt for two new exterior finishes. There's a blue named Oceanic, and a new red, called Ablaze, which you can see in the gallery. Check out the gallery up top, and then scroll down for the full press release. Related Video: New Style, Safety, Sounds and Sales Price For 2016 Scion FR-S April 30, 2015 TORRANCE, Calif. (April 30, 2015) – Scion's FR-S performance sports coupe is getting its style on for the 2016 model year. With interior improvements, two new colors, a new standard audio system and a rear-view back up camera, the next FR-S also sports a new price. The Manufacturer's Suggested Retail Price (MSRP) of the six-speed manual transmission FR-S is $25,305 while the six-speed sequential automatic transmission with paddle shifters and Dynamic Rev Management technology is $26,405. This price excludes the destination, processing and handling (DPH) fee of $770. The 2016 FR-S has a new premium feel with bright silver interior accents on the steering wheel bezel, shift bezel, door grip, and along the sides of the center console. Also inside the FR-S is a new standard audio system with a large 7-inch touch-screen display and voice recognition technology. For added safety, comfort and convenience, a rear-view backup camera has been integrated into the FR-S, as well. Adding to the new look, two new colors will be available with a new red called Ablaze and a new blue called Oceanic. The 2016 FR-S will be available in dealerships beginning in June.

Scion was Toyota's lost generation

Toyota's top North American leader was succinct in explaining the reasons for killing Scion. "It's the right decision at the right time," Jim Lentz said. It's hard to disagree. In a strong market that saw 17.5 million sales last year, Scion volume dipped three percent. Its product lineup has withered for years, which is always a telltale sign a brand doesn't have the full support of its owner. Though enthusiasts love the FR-S sports car, it's the fruit of a joint project with Subaru that also produced the BRZ. Scion's coolest car has a twin sold by one of its rivals. After the FR-S launched in 2012, Scion got nothing – squat – in the way of new products until the iA and iM arrived late last year, IHS senior analyst Stephanie Brinley noted. "[Scion] was not successful in building a visual brand identity or product personality," she said. Lentz, Scion's first vice president and now CEO of Toyota's North American division, admitted the market has changed. "Younger customers have a different mindset," he said. In the early oughts, a brand that catered to a youthful demographic made some sense, and this is one front where Toyota can declare victory. Seventy percent of Scion's buyers were new to Toyota, and the average age was 36 years old. The problem is, not enough of them buy Scions anymore. Scion hit a highwater sales mark of 173,034 vehicles in 2006 and hasn't come close to reaching that since. The recession hurt Scion, too. It bottomed out in 2010 with just 45,678 sales, a time when the rest of the industry was beginning to recover. There was a brief uptick (73,507) in 2012, but Scion failed to capitalize on that momentum and sales fell for three more years. Toyota is calling Scion's pending death a "transition" back to the main company. Sure, most of the cars will be rebadged Toyotas, like the FR-S, iA, and iM. The C-HR, an attractive future crossover that would have given Scion a boost, will go into production as a Toyota. But make no mistake: This is a failure. Toyota is closing a brand in the same way General Motors scrapped Oldsmobile, Ford shuttered Mercury, and Chrysler dropped Plymouth. Those brands languished for years. Toyota moved quicker to put the fork in Scion, which prevented it from becoming a long-term drain on the parent company. Lentz was dead on. It's the right time. News & Analysis News: Sergio Marchionne is against a Ferrari SUV Analysis: His exact words were, "you have to shoot me first," Bloomberg reported.