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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.

2017 Scion FR-S getting slight power bump?

A common refrain when discussing the Scion FR-S and its sibling the Subaru BRZ is that they are capable vehicles but are in need of more power. The latest rumors suggest that some more muscle might finally be on the way for the coupe's refresh. Don't expect something like the STI Performance Concept with a 300-horsepower, turbocharged flat-four, though – the gains in the real world are likely to be significantly more modest. According to Toyota insiders speaking with Motoring in Australia, the local Toyota GT86 (our FR-S) is due for a styling and powertrain refresh for the next model year. The 2.0-liter boxer four-cylinder engine isn't expected to get a drastic power increase, but it's not being completely neglected. A new intake manifold and friction reductions reportedly allow for five percent more grunt. If accurate, and if the changes also come here, that would take output of the US version to 210 hp and 159 pound-feet of torque. The adjustments could improve fuel economy by seven percent, as well. Handling is already a forte for the FR-S and BRZ, and things could get even better with this refresh. Motoring claims that dampers from Sachs might become standard equipment, along with a reinforced subframe. The close relationship with the BRZ reportedly rules out any dramatic changes to the styling for this update. However, the coupe is still likely to wear a new hood with vents in it, reshaped headlights, and a revised fascia with a larger lower grille. At the rear, expect a rear diffuser and exhaust pipes at the corners. While minor compared to all of these rumored updates, Scion recently gave the FR-S a few tweaks in the US for the 2016 model year (pictured above). In addition to some new colors and interior trim, it now comes standard with a seven-inch touchscreen infotainment system and rearview camera.

Scion pondering move upmarket?

Scion is simultaneously celebrating its ten-year anniversary with the 10 Series models and trying to figure out what to do with itself over the next ten years. Once a go-to consideration for young, first-time buyers who wanted something cool and different, in 2013 it has a model everyone is still talking about in the FR-S, a model few are still talking about in the iQ, and three models in between in the tC, xB and xD that make everyone wonder, "What happened?"
Automotive News spoke to Toyota's North American CEO, Jim Lentz - he was the VP in charge of Scion when it launched - about the options, and Lentz said one of them could be a move upmarket to challenge the established luxury brands that are moving downmarket. "There's going to be a big need in the $25,000 range for a fun-to-drive, nice-looking, value-oriented product," he said, and the FR-S, which starts at $25,255, could provide the platform for Scion to climb up a notch or two in price and perception. An idea like this could conceivably work in tandem with a proposal to move entry-level Scion products over to the Toyota brand - but remember, this is all just ideas on a whiteboard at the moment.
As opposed to an "entry-luxury fighter," the brand could swing back to the other option that was considered when it was formed, directly challenging the Korean makes that have usurped its cachet with first-time buyers. Lentz said Scion could go either way, and the tone of the piece seems to indicate that the final direction is still a ways away from being resolved.