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Scion was Toyota's lost generation

Toyota's top North American leader was succinct in explaining the reasons for killing Scion. "It's the right decision at the right time," Jim Lentz said. It's hard to disagree. In a strong market that saw 17.5 million sales last year, Scion volume dipped three percent. Its product lineup has withered for years, which is always a telltale sign a brand doesn't have the full support of its owner. Though enthusiasts love the FR-S sports car, it's the fruit of a joint project with Subaru that also produced the BRZ. Scion's coolest car has a twin sold by one of its rivals. After the FR-S launched in 2012, Scion got nothing – squat – in the way of new products until the iA and iM arrived late last year, IHS senior analyst Stephanie Brinley noted. "[Scion] was not successful in building a visual brand identity or product personality," she said. Lentz, Scion's first vice president and now CEO of Toyota's North American division, admitted the market has changed. "Younger customers have a different mindset," he said. In the early oughts, a brand that catered to a youthful demographic made some sense, and this is one front where Toyota can declare victory. Seventy percent of Scion's buyers were new to Toyota, and the average age was 36 years old. The problem is, not enough of them buy Scions anymore. Scion hit a highwater sales mark of 173,034 vehicles in 2006 and hasn't come close to reaching that since. The recession hurt Scion, too. It bottomed out in 2010 with just 45,678 sales, a time when the rest of the industry was beginning to recover. There was a brief uptick (73,507) in 2012, but Scion failed to capitalize on that momentum and sales fell for three more years. Toyota is calling Scion's pending death a "transition" back to the main company. Sure, most of the cars will be rebadged Toyotas, like the FR-S, iA, and iM. The C-HR, an attractive future crossover that would have given Scion a boost, will go into production as a Toyota. But make no mistake: This is a failure. Toyota is closing a brand in the same way General Motors scrapped Oldsmobile, Ford shuttered Mercury, and Chrysler dropped Plymouth. Those brands languished for years. Toyota moved quicker to put the fork in Scion, which prevented it from becoming a long-term drain on the parent company. Lentz was dead on. It's the right time. News & Analysis News: Sergio Marchionne is against a Ferrari SUV Analysis: His exact words were, "you have to shoot me first," Bloomberg reported.

Toyota gives dealers permission to drop Scion, shows them FR-S droptop, Juke rival first

We recently heard that Toyota could be looking to shrink its network of Scion dealerships, and now Automotive News is reporting that the automaker has officially given its dealers the green light to dump Scion without any penalties. Currently, Scion has about 1,000 dealers, yet our report from August 8 quotes an industry analyst as suggesting a healthier figure would be between 350 and 500 outlets. But before its current dealers make a decision on whether or not to get rid of the youth-oriented brand, Toyota also showed off a couple potential future products in the pipeline.
The FT-86 Open Concept shown above was revealed back in March at the Geneva Motor Show, and AN says that an FR-S convertible was driven on stage at a recent national Toyota dealer meeting in Atlanta. There has still been no definitive word one way or another as to whether the droptop model will be built, but it could be a good way to follow up to the popular FR-S coupe. Another possible future product is a subcompact crossover, which was shown in drawing form at the meeting, presumably aimed at small CUVs like the Nissan Juke and the upcoming Honda CUV based on the Fit, a model recently previewed by the automaker's Urban SUV concept.

2016 Scion iM Review [w/video]

Scion is all grown up. When the brand launched in 2003, it was as if Scion wanted to be the anti-Toyota. You could almost imagine it saying, "We aren't our parents, dude. We're different." Scion's decision to eschew mainstream vehicles was largely successful. The original xA, xB, and tC were affordable, economical, stylish, and – most importantly – different. But the brand's aging lineup couldn't keep the interest of the young, urban buyers it so coveted. Sales suffered severely after the 2009 industry collapse and have failed to return to their 2006 peak. So much like the bearded 20-something that's finally realized an artisanal headcheese startup isn't going to pay the bills, Scion has finally introduced its first truly mainstream model, the 2016 iM. You already know the basics on the iM, courtesy of Managing Editor Steven Ewing's testing in California in June. But since there's little substitute for more mileage and extra time with the car, we ventured out to Michigan's second largest city, Grand Rapids, for a second look. The iM is exactly the kind of vehicle Scion needs right now. Ewing spent most of his time on California's beautiful winding roads, but our second go in the iM was much more sedate, consisting largely of freeway cruising and some city driving. In short, these miles backed up our original assessment: the iM is exactly the kind of vehicle Scion needs right now. But that's not without a few problems. We spent almost all of our drive time behind the wheel of the continuously variable transmission model which, in many ways is better than the six-speed manual-equipped car we originally tested. Toyota's CVT works well; it's on par with the industry's best. The transmission keeps the revs low and responds quickly to throttle inputs, but at the same time, the tach needle is quick to retreat when acceleration isn't demanded. The stepped nature of the CVT is a bit off-putting at first – it feels a lot more sudden on the "upshifts" – but it's easy to ignore. Weirdly, there are no paddle shifters, but you can still pick your "gears" via the floor-mounted shifter. The iM doesn't hate a little bit of fun. We played with the CVT's sport setting, and while we wouldn't recommend using it on a regular basis, we liked the way it kicked up the revs upon corner entry. The engine never felt flat-footed midway through a turn, giving the impression that the iM doesn't hate a little bit of fun.