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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?

2016 Scion iA First Drive

Leading up to our first test of the 2016 Scion iA, we're actually really excited to drive it. A string of "if A, then B" logic tells us this car ought to be pretty good. We drove the new Mazda CX-3 and loved it. The CX-3 is based on the Mazda2 platform. The Scion iA is a rebadged Mazda2, built in Mexico as part of Toyota and Mazda's joint venture. Following that line of thought, we should like this Scion a lot. And we do – mostly. Parts of the Scion iA experience feel a lot more Toyota than Mazda. Scion executives tell us that Toyota had a lot of influence in the engineering of the Mazda2, since in addition to being the iA in the US, the car will be sold as the Yaris in other markets. Unfortunately, that Toyota-ness comes through in the driving dynamics. The iA uses Mazda's 1.5-liter Skyactiv-G four-cylinder engine with 106 horsepower at 6,000 rpm and 103 pound-feet of torque at 4,000 rpm. On the canyon roads near Malibu, CA, we're putting pedal to the metal; uphill acceleration is unsurprisingly poor for a car with meager output numbers like these. Around town, 106 hp and 103 lb-ft is perfectly fine for the 2,385-pound iA. And it allows the car to return impressive EPA-estimated fuel economy numbers of 33 miles per gallon city, 42 mpg highway, and 37 mpg combined with the six-speed automatic transmission. Should you choose the six-speed manual, those numbers only drop to 31, 41, and 35, respectively. The six-speed stick is all Mazda, and we love it. You should choose the manual, by the way. The six-speed stick is all Mazda, and we love it. Gear throws are short and snappy, and the clutch has a nice weight and crisp action. Driving the manual iA back to back with the six-speed iM really points out that Mazda makes a far better manual transmission than Toyota. Great gearbox aside, on these canyon roads, we're feeling a bit let down. Never mind the acceleration issues, the iA just doesn't feel like a Mazda in the turns. Credit where credit's due: the steering is really nice, with a solid feeling on center and crisp turn-in and lots of feedback throughout the entire range of motion. But we're remembering the solid, planted feeling the CX-3 exhibited when we hustled it along the mountain roads of Arizona. And we aren't feeling it here in the Scion iA.

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.