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Why Toyota Camry's Korea Car of the Year win is a big-time upset

The 2013 Toyota Camry is officially the car of the year in Korea. The country's motoring press graced the Japanese sedan with the honor for the first time, officially marking a shift in prevailing Korean attitudes toward Japan and its products. According to industry analysts, buyers in the country are no longer simply choosing their purchases based on whether or not they're made in South Korea, but rather based on quality and personal choice. That's a big jump from a few years ago, when buyers viewed their purchases through a patriotic lens.
The Camry managed to edge out a total of 44 other cars, including hardware from both Hyundai and Kia, to become the first foreign vehicle to take home the Korea Automobile Journalist Association's Car of the Year award. As The Detroit News points out, just 10 years ago, domestic manufacturers held some 99 percent of the Korean car market. But a change in trade regulations has opened up the country considerably, and buyers now have access to a wide range of products from around the globe. As a result, Hyundai and Kia have countered by cutting prices in an attempt to keep their grip on the market.

How many Toyotas are potentially affected by seat fabric problem?

When we reported yesterday on Toyota's stop-sale order of certain 2013 and 2014 models due to an issue with the fabrics on models with heated seats not conforming to flammability regulations, one of our many questions was how many vehicles were affected? More importantly, how many of those cars have already found homes?
Kelley Blue Book has the troubling statistics. Every 2013 and 2014 Avalon features heated seats. 6.2-percent of 2013 and 4.5-percent of 2014 Camry sedans, meanwhile, were sold with heated seats. That doesn't seem as bad as 100-percent of the larger Avalon, until you consider the Camry's huge volume - the 5.6-percent average still accounts for a lot of cars. Sienna minivans are heavily affected as well, with a total of 37-percent of 2013s and 46-percent of 2014s fitted with butt warmers. The stop-sale only affects 7-percent of 2014 Corolla models, but like the Camry, that number is rather misleading due to the sheer volume of cars Toyota moves. You can see the entire breakdown of percentages by clicking on the inset image.
According to Karl Brauer, a senior analyst for KBB, this problem comes at the worst possible time. "Given that much of the US is currently in the grips of a record cold snap, there's sure to be high demand for models with seat heaters," Brauer notes. The stop-sale order is a good first step, but it doesn't do anything to inform consumers who currently own the affected models and may, in these frosty temperatures, want to use their seat heaters. "Should owners of those vehicles stop using the seat heaters?" Brauer asked.

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.