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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.

Hi-po Toyota GT86 to get KERS?

We happen to like the Toyota GT86 - and, it of course goes without saying that the same applies to the Subaru BRZ and Scion FR-S, as well - just the way it is. Yes, that includes the standard 2.0-liter four-cylinder boxer engine and its 200 horsepower at 7,000 rpm.
That said, a little extra power never hurt anybody, right?
The most obvious way to add some punch to the GT86 would be with a turbocharger, and that has indeed long been rumored for an STI version of the BRZ. Will Toyota follow suit? According to Top Gear, the answer is no. Says GT86 chief engineer Tetsuya Tada, "I think 300bhp with a turbo and 200g/km of CO2 would be tasteless in this day and age. And a turbo would mean the loss of the GT86's uniqueness." Perhaps a bit harsh, but there you go.

Despite slow sales, no new Scion models in near-term pipeline [w/poll]

According to a top Toyota executive, the Japanese automaker will not be introducing any fresh Scion models in the near future, Reuters reports. As of August, Scion sales for this year were down 1.6 percent from 2012 and accounted for only 0.3 percent of Toyota's overall US sales. And last month, Toyota Motor Sales USA Senior Vice President Bob Carter informed the 1,000 dealers who carry Scion that they can drop the brand without penalty.
However, never fear - Carter has assured that, while nothing new is coming for at least six months, the company is still very committed to the quirky Scion brand. Toyota launched Scion, which targets the youth market, in 2003, and sales peaked in 2006. The brand currently has five models, with the 2013 best-sellers being the FR-S sports coupe followed by the tC sedan and xB hatchback.
What do you think about Toyota's decision to hold off on introducing new or refreshed Scion models? Are they heading in the right direction, or does this spell doom for the funky Gen Y brand?