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Scion pondering move upmarket?

Scion is simultaneously celebrating its ten-year anniversary with the 10 Series models and trying to figure out what to do with itself over the next ten years. Once a go-to consideration for young, first-time buyers who wanted something cool and different, in 2013 it has a model everyone is still talking about in the FR-S, a model few are still talking about in the iQ, and three models in between in the tC, xB and xD that make everyone wonder, "What happened?"
Automotive News spoke to Toyota's North American CEO, Jim Lentz - he was the VP in charge of Scion when it launched - about the options, and Lentz said one of them could be a move upmarket to challenge the established luxury brands that are moving downmarket. "There's going to be a big need in the $25,000 range for a fun-to-drive, nice-looking, value-oriented product," he said, and the FR-S, which starts at $25,255, could provide the platform for Scion to climb up a notch or two in price and perception. An idea like this could conceivably work in tandem with a proposal to move entry-level Scion products over to the Toyota brand - but remember, this is all just ideas on a whiteboard at the moment.
As opposed to an "entry-luxury fighter," the brand could swing back to the other option that was considered when it was formed, directly challenging the Korean makes that have usurped its cachet with first-time buyers. Lentz said Scion could go either way, and the tone of the piece seems to indicate that the final direction is still a ways away from being resolved.

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.

Scion C-HR Concept looks sharp at LA Auto Show

The Scion C-HR concept was shown off as a Toyota concept last year at the Paris Motor Show, and we've been told it will show up at next year's Geneva Motor Show in production form. In the transition from a Toyota to a US-focused Scion, though, it's been saddled with a regrettable piece of marketing-speak: the press release says the C-HR concept was designed for "yuccies." That's an acronym describing 'young, urban creatives,' and it should go away. The C-HR is at the LA Auto Show, however, a visually fascinating concept that we're looking forward to seeing in production form; it could be good, or it could be meh. The C-HR stands for "Compact size and High Ride height," partly an effect of 21-inch wheels, and Scion says it will combine "supreme functionality" and "sporty performance" under that "polarizing" skin. We don't know much more than that about it now, save that its purpose is to be "a fantastic urban driving car." The press release below has lots of adjectives to help you imagine what that means; apparently, if you like cutting boards with grid lines and "earthy, modern terrariums," this will be for you. Related Video: Scion's Next Icon: World Debut of C-HR Concept Car at Los Angeles Auto Show TORRANCE, Calif., Nov. 18, 2015 – When the designers for the Scion C-HR concept began their research, they were told by young urban creative customers, "Polarizing is ok. Boring is not." That sentiment was evident today as the Scion C-HR concept had its World Debut at the Los Angeles Auto Show. With an iconic design that also incorporates functionality and sporty performance, the Scion C-HR concept is much like Scion's customer in that it strives to stand out from the crowd. "Scion is known for doing things differently, and maybe even being a little weird," said Scion Vice President Andrew Gilleland. "This C-HR concept embraces that idea and wears it like a badge of honor. We couldn't be more excited to add the production version to our line-up." The C-HR concept is named for its Compact size and High Ride height. With five doors and a hatch for supreme functionality, it's the perfect vehicle for "yuccies," the young urban creatives who inspired the design. These customers put an emphasis on great design and wanted something distinctive, sophisticated, passionate and clean. They viewed most SUVs as too boring and wanted something for their urban lifestyle that sparked emotion.