2005 Scion Xb on 2040-cars

Auto blog

Toyota to kill Scion brand [w/video]

Toyota Motor Co. said Wednesday it will kill its youth-oriented Scion brand, ending a 13-year experiment that attracted new customers but ultimately drained resources from the parent company. The FR-S sports car, iA sedan, and iM five-door hatchback will be re-badged as Toyotas starting in August for the 2017 model year, and the tC coupe will end production then. The C-HR displayed at the Los Angeles Auto Show will become a Toyota vehicle when it launches. Scion's 22 dedicated team members will be given opportunities to join Toyota. Toyota says it made the decision in response to customers' needs, noting it finds younger buyers want practicality in addition to the individualistic styling and features that Scion offered. Meanwhile, Toyota's own vehicles have gotten sportier, which the company says appeals to younger buyers. Scion claimed some successes, pointing to its average customer age of 36 years old, with 70 percent of its buyers new to Toyota. Scion sold more than a million vehicles since it launched. Its best year was 2006, when it sold 173,034 vehicles. Sales declined steadily in 2007-08 and then crashed in 2009 during the recession to 57,961 units, before bottoming out in 2010 with only 45,678 sales. "This isn't a step backward for Scion; it's a leap forward for Toyota. Scion has allowed us to fast track ideas that would have been challenging to test through the Toyota network," said Jim Lentz, founding vice president of Scion and now CEO, Toyota Motor North America. "I was there when we established Scion and our goal was to make Toyota and our dealers stronger by learning how to better attract and engage young customers. I'm very proud because that's exactly what we have accomplished." While Scion never recovered from its drastic sales decline, it served as a test bed for marketing and dealer tactics that helped its parent company. Scion tried out no-haggle pricing, a streamlined option plan (some cars had only two choices: color and transmission) and a pre-paid maintenance plan. "We appreciate our 1,004 Scion dealers and the support they've given the brand," said Bob Carter, Toyota senior vice president of automotive operations. "We believe our dealers have gained valuable insights and have received a strong return on their investment.

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 FR-S recalled for key interlock problem

The Basics: Scion will recall 26,000 examples of the 2013-2016 Scion FR-S. The Problem: Some models with the automatic transmission might not have the connection for the key interlock. On these vehicles, it would be possible for owners to remove the key, even if the gearshift isn't in Park. This condition puts the coupes out of compliance with federal rules. Injuries/Deaths: "We are not providing specifics at this time," Scion spokesperson Cindy Knight told Autoblog. The company's announcement makes no mention of injuries or deaths. The Fix: Scion dealers will inspect the vehicles and connect the key interlock if necessary. If You Own One: Owner notification will begin in early March, according to Knight. More Information: Autoblog reached out to Subaru to see if there would be a similar recall for the BRZ. "We've confirmed with our Quality Assurance dept. that the BRZ does not have that defect, as the issue is related to the work conducted during pre-delivery service prior to sale," company spokesperson Michael McHale said. Related Video: TOYOTA RECALLS CERTAIN SCION FR-S VEHICLES TORRANCE, Calif., February 9, 2016 – Toyota Motor Sales, USA, Inc. today announced that it is conducting a safety recall of approximately 26,000 Model Year 2013-2016 Scion FR-S vehicles. In the involved vehicles, connectors for the automatic transmission key interlock on some vehicles may not have been connected during pre-delivery service prior to sale. If the delivery mode connectors are not connected, it is possible to remove the key in gear positions other than "Park", causing the vehicles not to comply with a portion of Federal/Canadian Motor Vehicle Safety Standard 114. This could increase the risk of vehicle rollaway and a crash. All known owners of the subject vehicles will be notified by first class mail and instructed to return the vehicle to a Toyota dealer to have the ignition key interlock function confirmed, and if necessary, delivery mode connectors connected at no charge. Information about automotive recalls, including but not limited to the list of involved vehicles, is subject to change over time. For the most up-to-date Safety Recall information on Lexus, Toyota and Scion customers should check their vehicle's status by visiting http://www.toyota.com/recall and entering the Vehicle Identification Number (VIN). Safety Recall inquiry by individual VIN is also available at the NHTSA site: safercar.gov/vin.