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Toyota giving Scion the axe?


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http://www.motortrend.com/news/breaking-toyota-gives-scion-brand-the-axe/

 

Seems to make sense. I think Toyota was missing a large opportunity with the Scion brand. I think if they just kept all these models as a Toyota, which they are in other parts of the world, they'd sell a lot more.

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Never really liked any of their cars and even the FR-S I'm indifferent on. They just feel very cheaply built and not fun to drive or own. Very bland interior, lacking of fancy amenities IMO. I know it's not a luxury brand, but it would be nice for some good options.
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Scion for Toyota was in a lot of ways what Edsel was for Ford -- a good idea in theory, but the wrong move for the times.

 

I disagree with you, Grant; the FRS is a great car to own. But I think it should have been the Toyota GT86 from the start instead of a Scion.

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But I think it should have been the Toyota GT86 from the start instead of a Scion.

 

You could say that about all their models though. Push the tC as a Celica or iM as a Corolla Liftback and I'd about guarantee you'd sell more.

 

I just bought a 2016 Scion iM the other day. First one we've sold. Anywhere else in the world it's a Corolla or Auris. You can't tell me that if you rebranded it as a Corolla Liftback you wouldn't sell more. FR-S would sell more as a GT86, probably would have sold even more if it had a Toyota engine in it, IMO.

 

I'm just curious what they do with their current models. Does the iA and iM only last one year as a model? Do they rebrand them as a Toyota? Do they scrap the FR-S, tC, CH-R?

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You could say that about all their models though. Push the tC as a Celica or iM as a Corolla Liftback and I'd about guarantee you'd sell more.

 

What you said makes sense to me. What I had in mind was that since the FRS revisited the tradition of the old Toyota 86 (e.g., simple, inexpensive, light weight, RWD, ripe-for-mods), it should have stayed true to that and been branded a Toyota. I guess my point is pretty arcane when compared to your marketing observations.

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It's been my observation that the only people who thought Scion specifically was cool was mostly young guys who didn't have the means to buy a new car. This made it pointless not to just call them Toyotas so everybody else would pay more attention.

 

I'm indifferent about it anyway. The FR-S is a fun car (Grant is just salty he doesn't fit and doesn't know what good handling is), but I don't see how the other cars in their line up fit with a "youth" brand other then looking like small shitboxes.

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IMO another problem with scion was the no haggle pricing. dealers probably had limited input over getting rid of cars they weren't selling.

 

toyota really missed the mark on this venture

 

This more than anything. "no haggle" pricing always feels like a "fuck you" from the auto industry, even if the car is the cheapest in the market segment.

 

I don't think re-naming them "toyotas" will make any difference. I mean really, is there anybody still alive that doesn't know Scion was a Toyota brand? they didn't really have stand alone dealers, most were part of a larger Toyota dealer.

 

I think discontinuing the cost of maintaining a separate brand will save Toyota money, but the cars will sell probably the same as they always have. the car sells itself on looks, fit and finish, or some other external circumstance (e.g. country of origin, etc). calling the FRS a toyota FRS or GT86 isn't going to make a lick of difference. Ultimately the savings in not having to maintain a separate brand for the cars will be what keeps them in the market, you are not going to see a huge surge in FRS sales the moment toyota does what every FRS owner already does the moment they buy the car: slap a toyota badge on it.

 

I actually feel like this is a shame. Scion did some cool stuff and had some really different marketing. In the end they were still a car company so let's not get crazy, but they certainly felt different. I feel like their undoing was they didn't have a "halo" car. I know the FRS was supposed to be it, but as great a car as it is I think it under delivered in several areas. They needed a car like the WRX STi or the Hyundai Genesis with competitive sports car power to sell the brand image as a youth car, not the hardtop miata that is the FRS.

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From what I read, they are rebadging them as Toyota's. Didn't say which models will stay or go, but they also mentioned they are toying with the idea of a turbocharged Toyota engine for the FR-S...
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The following is my observation that I wrote elsewhere a while ago. I don't know how accurate it is as I've gleaned this just from talking to a few salesmen, but this is the info I have.

 

One of the biggest issues IMO for Scion was not just the pricing, not just the cars, but HOW the cars were sold. Basically a Scion gets built and sent to the U.S. as a total base model. Then it sits at port for something like a max of 90 days. In those 90 days, dealers can put in a request for the car and then the customer (or dealer) desired options are added on at port. So if you want a car with the upgraded infotainment and premium wheels, that gets added at port and shipped to your dealer. The problem is that the cars sell so slowly that they just eventually get sent to dealers in random configurations that can't be changed easily due to monroney label laws. so dealers end up with a bunch of strange stock that they can't discount due to "pure pricing", the customers don't buy them, and the cars rot away. It's bad for everyone.

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All current Scions other than the TC, which will have one more year as a special going out model, will be re-rebadged as Toyotas.

Scion was created to "go out on a limb" so to speak in the market and take risks the Toyota brand was adverse to. They accomplished that for the first 4 yrs or so. Now, Toyota thinks they're capable of fulfilling this requirement on their own. And they are. Now, hopefully, they will.

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The following is my observation that I wrote elsewhere a while ago. I don't know how accurate it is as I've gleaned this just from talking to a few salesmen, but this is the info I have.

 

One of the biggest issues IMO for Scion was not just the pricing, not just the cars, but HOW the cars were sold. Basically a Scion gets built and sent to the U.S. as a total base model. Then it sits at port for something like a max of 90 days. In those 90 days, dealers can put in a request for the car and then the customer (or dealer) desired options are added on at port. So if you want a car with the upgraded infotainment and premium wheels, that gets added at port and shipped to your dealer. The problem is that the cars sell so slowly that they just eventually get sent to dealers in random configurations that can't be changed easily due to monroney label laws. so dealers end up with a bunch of strange stock that they can't discount due to "pure pricing", the customers don't buy them, and the cars rot away. It's bad for everyone.

 

Subaru does that too.

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From what I read, they are rebadging them as Toyota's. Didn't say which models will stay or go, but they also mentioned they are toying with the idea of a turbocharged Toyota engine for the FR-S...

 

It will probably be a turbocharged 1.3 that makes 140 horsepower or something...

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I consider this good news, rather have a Toyota GT86 than a Scion FRS anyways.

 

Sounds like it'll be a Toyota FRS in the USA. They've given no clues that they are going to rename any vehicles, only rebadge.

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Here's answers to most of your questions.

 

 

http://pressroom.toyota.com/releases/scion+transition+toyota.htm

 

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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