Toyota dealers get OK to drop sagging Scion
#1
Toyota dealers get OK to drop sagging Scion
http://www.autonews.com/apps/pbcs.dl...#axzz2cLWlEXbe
LOS ANGELES -- Toyota has told dealers that too many of them carry the underperforming Scion franchise, so they're free to walk away from the youth-oriented brand without facing penalties.
But the company has offered a glimpse of two possible future products for dealers who stick with Scion.
At Toyota's national dealer meeting in Atlanta this month, dealers were told Scion "'may not be for everybody,' because there's not enough throughput," said a Texas dealer who spoke on condition of anonymity.
Although executives did not give a target for cutting the number of outlets, they told dealers: "If you don't want Scion, if it doesn't work for you, it's OK if you want to walk away," the dealer said.
About 1,000 of Toyota's 1,225 dealers carry the Scion franchise. When Toyota launched the brand in 2003, it expected about half of its dealers to sign up. But when initial volume boomed on the success of the xB hatchback and tC coupe, Toyota dealers jumped into the game.
After peaking at 173,034 sales in 2006, Scion volume has fallen off sharply. Most of the vehicle lineup is aging, and Toyota has shown few signs of offering replacements.
Toyota Senior Vice President Bob Carter declined to comment on the specific discussions about Scion's dealer count at the meeting, saying, "We're not ready to go public with that yet."
But Toyota Division General Manager Bill Fay recently told WardsAuto that Scion "has a few too many stores," and is looking at store viability across the dealer body.
For dealers who do remain, there is the promise of new products on the horizon. That could include the on-again, off-again Scion FR-S convertible, which appears to be back in the rotation.
At the Geneva auto show this year, Toyota showed the FT86 convertible concept, a rendering of Toyota's rear-wheel-drive GT86 coupe, as the FR-S is called in Europe. There have been concerns inside the company that the projected price point would be too high for Scion's target customer.
But at the Atlanta meetings, the FR-S convertible concept was driven on stage to the strains of Aerosmith's "Sweet Emotion." Toyota sources say the automaker likely will sell the car in other markets with Toyota badging.
"They don't show product they don't plan on building," said a California Toyota dealer. But he cautioned that because the FR-S is co-branded with Subaru, the other automaker may have to give approval to build the convertible.
Toyota also showed a drawing of a subcompact crossover concept with a "racy silhouette," the California dealer said.
The vehicle would be smaller than a RAV4 and would compete against Honda's upcoming crossover based on its Fit hatchback, a Toyota source said.
Although Toyota rarely comments on future product, Carter said the FR-S convertible "is under study but has not been green-lighted."
He declined to comment on the crossover concept, but Toyota executives admit to looking into the segment after Honda's crossover unveiling at this year's Detroit auto show.
But the company has offered a glimpse of two possible future products for dealers who stick with Scion.
At Toyota's national dealer meeting in Atlanta this month, dealers were told Scion "'may not be for everybody,' because there's not enough throughput," said a Texas dealer who spoke on condition of anonymity.
Although executives did not give a target for cutting the number of outlets, they told dealers: "If you don't want Scion, if it doesn't work for you, it's OK if you want to walk away," the dealer said.
About 1,000 of Toyota's 1,225 dealers carry the Scion franchise. When Toyota launched the brand in 2003, it expected about half of its dealers to sign up. But when initial volume boomed on the success of the xB hatchback and tC coupe, Toyota dealers jumped into the game.
After peaking at 173,034 sales in 2006, Scion volume has fallen off sharply. Most of the vehicle lineup is aging, and Toyota has shown few signs of offering replacements.
Toyota Senior Vice President Bob Carter declined to comment on the specific discussions about Scion's dealer count at the meeting, saying, "We're not ready to go public with that yet."
But Toyota Division General Manager Bill Fay recently told WardsAuto that Scion "has a few too many stores," and is looking at store viability across the dealer body.
For dealers who do remain, there is the promise of new products on the horizon. That could include the on-again, off-again Scion FR-S convertible, which appears to be back in the rotation.
At the Geneva auto show this year, Toyota showed the FT86 convertible concept, a rendering of Toyota's rear-wheel-drive GT86 coupe, as the FR-S is called in Europe. There have been concerns inside the company that the projected price point would be too high for Scion's target customer.
But at the Atlanta meetings, the FR-S convertible concept was driven on stage to the strains of Aerosmith's "Sweet Emotion." Toyota sources say the automaker likely will sell the car in other markets with Toyota badging.
"They don't show product they don't plan on building," said a California Toyota dealer. But he cautioned that because the FR-S is co-branded with Subaru, the other automaker may have to give approval to build the convertible.
Toyota also showed a drawing of a subcompact crossover concept with a "racy silhouette," the California dealer said.
The vehicle would be smaller than a RAV4 and would compete against Honda's upcoming crossover based on its Fit hatchback, a Toyota source said.
Although Toyota rarely comments on future product, Carter said the FR-S convertible "is under study but has not been green-lighted."
He declined to comment on the crossover concept, but Toyota executives admit to looking into the segment after Honda's crossover unveiling at this year's Detroit auto show.
#3
Seems like they are trying to find ways to bring life to the brand but not quite sure what to do. I think they have forgotten what is about initially. Sales are flat because they ended the first cycle too abruptly and second cycle has been here too long.
I think they had something with the tC/CT200h idea but ended up keeping the tC a hatchback and sent the CT to Lexus as a hybrid. A sporty looking 5-door hatchback like that would definitely catch eyes, and wallets too.
Now is as good of a time as ever to be bold.
I think they had something with the tC/CT200h idea but ended up keeping the tC a hatchback and sent the CT to Lexus as a hybrid. A sporty looking 5-door hatchback like that would definitely catch eyes, and wallets too.
Now is as good of a time as ever to be bold.
#7
Easy. Toyota GT-86 (like everywhere else), Toyota IQ (like everywhere else), and either call the tC the Celica or Zelas. XB and XD are dead now, right?
The point of Scion even existing as a separate brand was to bring new blood into Toyota showrooms. If the showrooms don't even include Scion, why bother? What's the point of a contrived brand instead of Toyota, which has more equity anyway!
The point of Scion even existing as a separate brand was to bring new blood into Toyota showrooms. If the showrooms don't even include Scion, why bother? What's the point of a contrived brand instead of Toyota, which has more equity anyway!
#8
Scion does poorly in Canada because they came here late ~2011, have few dealerships (2 in my pop. 1 million city) that have minimal stock. Even a test drive of an IQ was a pain because of a 10 minute max. drive and a waiting list for that!
I think Toyota pretty much ruined Scion's (early-year) edgy styling. They are a very conservative car maker and toning-down Scion style is totally the wrong direction, as we all know here. The rounding of edges, odd color choices etc. they could do much better with the brand, as well as treat the brand better in the dealerships.
I think Toyota pretty much ruined Scion's (early-year) edgy styling. They are a very conservative car maker and toning-down Scion style is totally the wrong direction, as we all know here. The rounding of edges, odd color choices etc. they could do much better with the brand, as well as treat the brand better in the dealerships.
#9
If toyota brings back the Supra, Celica and a redesigned AE86 The Trueno then you can kiss Scion
Goodbye. SCION is not an issue. The issue is people financing and leasing these new Prius hybrids and the base Corolla still remains a best selling car. Whatever sells stays, if its not selling there is no point of continuing its market.
Goodbye. SCION is not an issue. The issue is people financing and leasing these new Prius hybrids and the base Corolla still remains a best selling car. Whatever sells stays, if its not selling there is no point of continuing its market.
#10
Scion has never been a real brand - it's a conduit for domestic market Toyotas, and a marketing project. It's basically Toyotas Geo/Saturn. It has no dealer network, no independent platforms, and pulls models that could otherwise improve the Toyota brand. What reason is there for Scion to exist separate from Toyota?
The ist and Bb of course became the xA/xD and xB.
The tC *IS* a Celica. The T-chassis Toyotas have been sold as Carinas, Coronas, Avensis, Celicas, and tC's throughout the years. The four door variants disappeared in the US in favor of the larger Camry.
Heck, the Camry and Supra were both Celica spin offs (Toyota Celica Supra, Toyota Celica Camry)
The ist and Bb of course became the xA/xD and xB.
The tC *IS* a Celica. The T-chassis Toyotas have been sold as Carinas, Coronas, Avensis, Celicas, and tC's throughout the years. The four door variants disappeared in the US in favor of the larger Camry.
Heck, the Camry and Supra were both Celica spin offs (Toyota Celica Supra, Toyota Celica Camry)
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