So long Scion

Before I left my job at Toyota, there was buzz of Toyota giving Scion one more big push to keep it going with their new models.  The iM and iA were supposed to help the brand stay alive.  But  it was the final attempt, and if they did not sell the Scion brand would be dropped.

Well almost 6 months later the verdict is in that the new models are not selling like they should under the Scion name. And Toyota announced that it will be dropping the Scion name.  Dropping the xB and tC completely in August 2016, but keeping the FRS, iA and iM under Toyota.

The idea behind Scion was a good, and I think they executed it very well.  The cars looked sporty, and always fit the trends when they were released.  They all had Toyota reliability and were priced fair.  The ideal car that a parent would pick out for their teenager.

A lot of the Scion owners were young, and did not have the funds to really put into the car.  They would typically spend their money on the basics, and most of the bigger builds were huge sponsored builds for big companies wanting to tap into the tuner scene.  Over the years there were many really nice builds all over the US, most of them were geared towards the stance scene.   In the early years the Scion crowd was huge.  Scion was big into the scene throwing events for Scion owners all over the country, and offering incentives to their owners for being loyal customers.

After the 1st generation of Scions I believe that the flame of the Scion scene dimmed a little.  The aftermarket was there, but the drivers had grown up and kind of gotten bored of their cars.  The cars pretty much remained the same mechanically with slight performance updates, but many changes were made to the appearance of the newer models.  The xA was dropped from the lineup, but the xD remained and the iQ was introduced.  The tC and the xB were the main focus of the brand a that time with a full redesign.

I personally think that one of the downfalls of the brand was the performance aspect.  They were geared towards the young crowd with the visual appeal, but after owning a car for a while that appeal wears.  And you want a little excitement from your car at that age.  The Scion cars were perfect alternative to the average person that wanted to get a reliable car.  But for their core demographic, the brand had lost its edge a little.

The FR-S was that breath of fresh air for Scion.  Rear wheel drive sport compact under the Scion name was a huge hit.  The car had been teased for years, and it finally was released.  And the reviews were great.  At that time the only RWD compacts left were the Miata and Genesis coupe.  So there was room for another car in that market.  The FRS released with great reviews and much praise paying homage to the classic AE86 corolla.

The FRS put a lot of push into the Scion brand.  And put the name back in recognition with the tuner crowd.  The FRS was a chosen platform for every type of motorsports.  And Scion started to get back into the habit of hosting events, and being part of the scene again.

For us the FRS was a hot seller, but on the business side the car could not keep the brand a float by itself.  The tC and xB sales had been declining.  You can see the good years of the brand from 2005 to 2008 for the xB and tC in the chart below.  From almost 173,000 units sold in 2005 to a drop of 57,000 in 2009.  There was a slight pickup with the release of the FRS in 2012.  But the sales never really recovered, and have dropped back down to 56,000 in 2015.  The FRS was not a big seller for Scion overall only selling 54,000 in 4 years.

You have to appreciate what Toyota did with their Scion brand.  Trying to break out of their boring stereotype and give the youth an exciting brand.  I think what hurt them was the fact that over the years the other companies started to follow suit with some of their existing models. And they were able to produce exciting cars aimed at the youth that offered more performance for the price.   The original owners grew up and wanted a little more from their Scions, but did not really get any change with performance from the models over the years.  We needed that one high performance track ready powerhouse from Scion.  The accessories offered from the dealer were never highly promoted or pushed by the salesman who would rather sell you a Corolla or Camry with a rebate over a Scion.  You cant really blame Toyota for not producing a high performance Scion model with sales slowly declining.  We are thankful that we will still have the FRS around under the Toyota name. Hopefully with them not having the Scion brand  they can push towards that high performance tuner car that we have missed since the death of the Supra.

Scion has started a huge community with their owners, and  we are very thankful that they invested 13 years in the sport compact scene.

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SCION BRAND TO TRANSITION TO TOYOTA

TORRANCE, Calif., Feb. 3, 2016 – Scion, established as a separate brand in 2003 as a laboratory to explore new products and processes to attract youth customers, is now transitioning back to the Toyota brand. Scion achieved its goals of developing unique products and processes, and bringing in new, younger customers to Toyota. With more than a million cars sold, 70 percent of Scions were purchased by customers new to Toyota and 50 percent were under 35 years old.

“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.

“We could not have achieved the success we have had without the incredible support of Scion’s customers, dealers and team members, so supporting them throughout this transition process will be one of our top priorities,” said Lentz.

Toyota’s decision was made in response to customers’ needs. Today’s younger buyers still want fun-to-drive vehicles that look good, but they are also more practical. They, like their parents, have come to appreciate the Toyota brand and its traditional attributes of quality, dependability and reliability. At the same time, new Toyota vehicles have evolved to feature the dynamic styling and handling young people desire.      

Scion has consistently been the youngest brand in the auto industry with an average age of 36 years old. At 29, the tC sports coupe has the lowest-average age buyer in the industry. The most recent additions to the line-up, the iA sedan and iM 5-door hatchback, are bringing in new buyers with 70 percent being first-time new car purchasers. Additionally, more than 50 percent of iM and iA buyers are under 35 years old. 

As part of the brand transition, beginning in August 2016, MY17 Scion vehicles will be rebadged as Toyotas. The FR-S sports car, iA sedan and iM 5-door hatchback will become part of the Toyota family. The tC sports coupe will have a final release series edition and end production in August 2016. The C-HR, which recently debuted at the L.A. Auto Show, will be a part of the Toyota line-up.

The service and repair process for Scion customers will be unaffected by this change as customers will continue to visit Toyota dealerships’ service departments.  

“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. During this time of transition, we will work closely with them to support this process and help communicate this change to customers.”  

Scion’s 22 dedicated team members, who represent sales, marketing, distribution, strategy, and product and accessories planning, will have the opportunity to take on new jobs at Toyota Motor Sales, U.S.A., Inc. in Torrance. Scion regional representatives will assume different responsibilities in their respective Toyota sales offices.   

“Scion has had some amazing products over the years and our current vehicles are packed with premium features at value prices,” said Andrew Gilleland, Scion vice president. “It’s been a great run and I’m proud that the spirit of Scion will live on through the knowledge and products soon to be available through the Toyota network.”

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