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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's would-be savior C-HR spied before its Toyota rebadging

Scion is dead, but one of its future products, the C-HR concept, is still in development for launch as a Toyota. Toyota does a thorough job of hiding the C-HR's rakish shape on these test cars, but we can spot the concept's design cues. For example, the pointed nose and narrow headlights are present, and the giant box on the roof can't hide the downward arch for the coupe-like rear. The back doors on these examples look larger than before, which suggests a switch to a traditional five-door body rather than the hidden rear openings on the concept. The change would offer easier access to the backseat and make the C-HR a better competitor in the segment against vehicles like the Honda HR-V, Mazda CX-3, and Jeep Renegade. The C-HR debuted as a boldly styled three-door crossover at the 2014 Paris Motor Show. Toyota later restyled the CUV with a more angular shape and extra doors. We most recently saw the compact crossover with Scion branding at the 2015 Los Angeles Auto Show. Rumors suggest the production model's debut at the Geneva Motor Show in March, and it could arrive at dealers in the latter half of 2016. The powertrain lineup likely consists of a four-cylinder engine with a CVT and possibly a hybrid version, too. You'll also get to see the C-HR on the track because Toyota will race the crossover in the 2016 Nurburgring 24 Hours. Related Video:

Legal approach in $1.2 billion Toyota settlement could impact handling of GM recall cases

In the past, if an automaker did something wrong, they were usually prosecuted by the US government through something called the TREAD Act. Short for Transportation Recall Enhancement, Accountability and Documentation Act, it basically requires automakers to report recalls in other countries, along with any and all serious injuries or deaths, to the National Highway Traffic Safety Administration.
Failing to report or attempting to conceal anything when there's been a death or serious injury constitutes a criminal liability. The idea is that this setup puts the onus on manufacturers to keep NHTSA apprised of safety related issues before they become a problem in the US, thereby allowing the regulator to better protect consumers.
In theory, it sounds like a relatively airtight set of rules for dealing with misbehaving automakers. That didn't stop the US Department of Justice from ignoring TREAD in its prosecution of Toyota's handling of the unintended acceleration recall, though. The result of this new approach, which charged Toyota with wire fraud, was a $1.2 billion settlement. Now, the wire-fraud approach could be used for the expected case between the US government and General Motors, based on the statements of Attorney General Eric Holder, who specifically mentioned "similarly situated companies" when discussing Toyota.