For something a bit surprising. This morning, Toyota has announced that the Scion brand will be shuttered and the current lineup will transition over to the Toyota brand for the 2017 model year.
News of this was first reported by CarBuzzard where a meeting was held yesterday with Scion employees notified of the decision.
“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, CEO of Toyota Motor North America and the founding vice president of Scion in a statement.
Scion was first introduced back in 2002 as a brand that was very different from Toyota as it was aimed at young buyers. It was fun and offered unique vehicles (the xA and xB at launch). The brand also did things a bit differently with a unique marketing campaign and a no haggle policy. Toyota hoped customers who bought Scions would transition into Toyota and Lexus vehicles in the future.
But a number of issues plagued Scion which ultimately led to its downfall,
The average age of Scion buyer was around 49 years old, not the young crowd Scion was hoping for (some reports put it at 15 percent of Scion customers were under the age of 35).
Scion not updating their lineup at a decent rate and letting models languish
Massive sales decline from 175,000 vehicles in 2006 (their best year) to 56,167 vehicles for 2015
But it seemed last year Toyota was going to give the brand so much needed attention with the launch of the iA (Mazda2 sedan) and iM (Toyota Auris). There was also a new subcompact crossover that would be joining the lineup for 2017, the C-HR. But sadly, it was a little too late. The damage was done and Toyota realized there wasn't any way to save the brand.
The twenty-two dedicated team members for Scion will be able to transition into positions at Toyota.
“Scion has had some amazing products over the years and our current vehicles are packed with premium features at value prices. 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,” said Andrew Gilleland, Scion vice president.
Source: CarBuzzard.com, Motor Trend, Road & Track, Scion
Picture: William Maley for Cheers & Gears
Press Release is on Page 2
Scion Brand to Transition to Toyota
Valuable Insights Will Aid Toyota in Attracting New, Young Customers
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.”
Scion Accomplishments:
Scion Processes - Scion served as a laboratory for products and key sales and marketing processes that have provided valuable lessons for other Toyota brands:
Pure Pricing – dealers set a price for a car and customers did not need to negotiate
Mono-Spec cars – providing cars with only two options: transmission and color
Personalization – offering a large array of accessories to help customers customize their vehicles
Pure Process – transparent financing process
Pure Process Plus – an online system so much of the car-purchase process could be completed online
Scion Service Boost – pre-paid maintenance plan
Release Series – dynamic life cycle management through special features and options
Grassroots marketing – initial Scion brand was “discovered” by customers through unique events
Scion Products -- Scion has had some outstanding products that have made an impact in the industry including the original “box,” the xB and the FR-S affordable sports car. The tC sports coupe has consistently attracted the youngest buyer in the industry.
Scion Executives -- Scion served as an important training ground for Toyota vice presidents, many of whom have been promoted to other roles:
Jim Lentz -- Chief Executive Officer, Toyota Motor North America
Mark Templin – Managing Officer, Toyota Motor Corporation, Executive Vice President, Lexus International
Jack Hollis – Group Vice President, Toyota Marketing
Doug Murtha – Group Vice President, Corporate Strategy and Planning, Toyota Motor North America
Andrew Gilleland – current Vice President, Scion
Scion has announced pricing information for their upcoming iA subcompact sedan and iM compact hatchback that will be hitting dealers later this summer.
First up is the iA which begins at $16,495 for the six-speed manual and $17,495 for the six-speed automatic. Prices include a $795 destination charge. Underneath the Scion badges is the Mazda2 sedan which packs a 1.5L four-cylinder producing 106 horsepower and 103 pound-feet of torque.
Need a bit more space? Then you want to look at the iM which is a rebadged version of the Toyota Auris sold in Europe. Pricing starts at $19,255 for the six-speed manual or $19,995 for the CVT. Power will come from a 1.8L four-cylinder with 137 horsepower and 126 pound-feet of torque.
Source: Scion
Press Release is on Page 2
Two Scion Models Gearing to Go: All-New 2016 Scion iM and Scion iA Priced to Please
SANTA MONICA, Calif., June 29, 2015 – The next great adventure is well within reach. The all-new 2016 Scion iM hatchback and 2016 Scion iA sedan both deliver versatility and premium features that will fuel drivers’ fun, with outstanding prices to fit their finances too. Both vehicles race into showrooms Sept. 1, 2015.
With an MSRP of $18,460 for the manual transmission and $19,200 for the CVTi-S model, the Scion iM is a fun-to-drive hatchback with the space and technology necessary for impromptu escapes from the daily grind. Its sporty sibling, the Scion iA, is Scion’s first sedan and well-priced at $15,700 for the 6-speed manual transmission and $16,800 for the 6-speed automatic. A $795 delivery, processing and handling fee is not included in the MSRP. With Scion’s no hassle, no haggle Pure Price, the same price posted in the dealership is the price customers pay.
Scion iM: Space and Spunk for Drivers on the Go
The iM draws some style inspiration from Scion’s FR-S sports car with the hexagon lower grille, sharp-eyed headlights and side bezels. But this hatchback makes its own unmistakable statement with its dynamic profile, piano black grille treatment, sporty body aero kit and LED daytime running lights. Buyers can turn up visual impact with available colors: Blizzard Pearl, Classic Silver Metallic, Black Sand Pearl, Barcelona Red Metallic, Spring Green Metallic and Electric Storm Blue.
The 137 horsepower 1.8-liter 4-cylinder engine uses Valvematic continuously variable valve timing technology to offer a broad torque curve, so the iM feels responsive in all situations. The chassis, with double-wishbone rear suspension and standard 17-inch alloy wheels, is ready to smooth out bumps and curves.
The standard 6-speed stick shift promises an engaging driving experience, while the optional automatic features an intelligent Continuously Variable Transmission with both a Sport Mode and manual shifting capability. Both transmission options hit a sweet spot of performance and efficiency, with an EPA rating of 28 city/37 highway/ 32 combined for the CVTi-S and 27 city/36 highway/31 combined for the manual transmission.
A premium feel at a value comes from the iM’s lengthy list of standard amenities:
60/40 fold-down rear seats and standard cargo cover
7-inch Pioneer Display Audio unit with standard HD Radio and Aha™
Rear-view backup camera
Real leather-wrapped steering wheel
Scion’s first 4.2-inch color TFT multi-information display
Dual-zone automatic A/C control
Color-keyed heated power-folding exterior mirrors
Hill Start Assist
Scion iA: Athletic and Agile Choice for the Road Ahead
Scion’s first sedan enters the world with some serious style. The iA cuts a striking profile with daring curves, hexagon lower grille and sophisticated touches, including a piano black bumper treatment, chrome grille surround and chrome tailpipe. The spacious trunk gives it a distinctive look in the segment. The color choices deliver a range of vibrant intensity: Stealth black, Abyss, Graphite, Pulse, Sapphire, Sterling and Frost.
Don’t be fooled by its size, the iA is big in both spirit and technology. The basic ingredients: a high-strength body structure, quick-revving, high-compression 1.5-liter engine with 106 horsepower; choice of 6-speed manual or 6-speed automatic transmissions; and standard 16-inch alloy wheels. The Scion iA zips as it sips with EPA-estimated fuel economy ratings of 33 city/42 highway/37 combined MPG for the automatic version 31 city/ 41 highway/ 35 combined for the manual. A Sport Mode feature is available with the flip of a switch.
The Scion iA re-defines “entry-level” at every turn. The MacPherson strut front suspension and torsion beam rear suspension are tuned for a just-right balance of sporty handling and comfortable ride. Steering and brake system tuning, in particular, received attention befitting of a sports sedan. The Scion iA uses a rigid steering mount, which provides a direct yet light feel also unexpected in low-priced, high-MPG rated models.
Scion’s famous mono-spec strategy brings together standard features to impress:
Keyless entry with push-button start
Low-speed Pre-collision system
Rear-view backup camera
7-inch touch screen multimedia system with voice recognition
Tilt and telescopic steering wheel
Power exterior mirrors
Versatile 60/40 split rear seat back
Scion has been called Toyota's experimental division as it allows Toyota to try new products and ideas (although it hasn't been used for this in a few years). Now with this, you would think Toyota would introduce some new hybrid or electric vehicle. But Green Car Reports reports that it will not likely happen anytime soon.
Scion chief Doug Murtha tells Green Car Reports the brand is still maintaining its focus on providing vehicles for those under 35, a group that isn't quite ready to spend the cash for these type of powertrain technologies.
“People think that this would have a lot of appeal with our target audience; and it absolutely does, and the environmental benefits are nice,” said Murtha. “But where it jumps the track is when we start talking about how much they might be willing to pay for a hybrid system: pretty much zero.”
Source: Green Car Reports
For the past couple of years, we have reporting on countless rumorpile stories concerning the Scion FR-S. Most of these stories have dealt with a convertible and turbo power, and whether or not they are off or back on the table. Well it might be that two things may never come.
Wards Auto spoke with Doug Murtha, senior vice president at Scion. Murtha explained that Toyota couldn't make a business case for either proposal.
“So on the convertible we went down swinging,” said Murtha. “I think we were pretty aggressive on our (submitted plan), but we looked at what we would have conceivably lost on the product and said, ‘We’re not going to even push it further.’ Nobody was more disappointed than we were.”
This isn't the news the FR-S wanted to hear. At the moment, the model has been experiencing sales drop for most of the year. This is due to the phenomenon of sports car sales falling off halfway through the lifecycle of the vehicle, something Murtha admits.
“You get 24 months out of those products and they tend to have a steep fall-off (and) we’re seeing a little bit of that. I don’t think that’s necessarily a surprise. I think the challenge is back to us to do some interesting things that keep the vehicle fresh.”
For now, Scion is hoping the recently launched FR-S Release Series 1.0 will be able to bring back some interest in the sports coupe.
Source: Wards Auto
Car and Driver had the chance to speak with Scion corporate manager Dave Harbuck, who let out that the automaker is planning to reveal two new models at the New York Auto Show next year.
The first is a production model of the iM Concept that will debut in a couple week's time at the LA Auto Show. Many think that iM Concept is version of the Toyota Auris Touring Sports, a small wagon sold in European market. The second model is being kept under wraps for the moment. Car and Driver speculates that it could be the Aygo hatchback or the compact Verso MPV.
Source: Car and Driver
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
One of the rumors that has been floating around for the past year or so was the Scion FR-S (Toyota GT86) possibly getting a hybrid powertrain as a way of boosting power.
"I hope to make an engine upgrade at least one time with this car. We [have] already tried all possibilities and there are several types of 86 prototypes at the Toyota proving ground now; one is a turbocharger, one is bigger displacement and [the other is a] special hybrid system," said Tetsuya Tada, chief engineer of the FR-S last August.
Well it seems that the hybrid powertrain is out. According to Autocar, Toyota is having a tough time trying to make a business case for a hybrid FR-S.
"We can create a product with this technology, but it needs to make proper business sense. We have to prioritise,” said Toyota marketing director Fabio Capano.
Source: Autocar
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
Scion has been hamstrung for the past couple of years with an aging lineup. While new models such as the FR-S and updated tC have helped somewhat, Scion's sales have been declining. But the brand is planning to overhaul their lineup starting next year.
Speaking on the sidelines of the New York Auto Show with Automotive News, Scion vice president Doug Murtha said the brand is planning to replace three of its five models starting next year. The first new model will be shown at the LA Auto Show. Murtha didn't give any details about what segment the new model would be in, but did hint at a possible direction.
“From a segment context, Scion has always been about entry compact and subcompact, and that will remain our center of gravity,” Murtha said.
“Would we be interested in other body styles? The answer is always yes. We may mix things up a bit as we find a new direction for the brand.”
The mostly likely candidates for replacement for the xB and xD models. The two models are currently into their seventh year of their lifecycle. The other candidate for replacement is the iQ city car.
Source: Automotive News (Subscription Required)
