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Scion was Toyota's lost generation
Sat, Feb 6 2016Toyota'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.
More powerful 2017 Toyota 86 takes over for the Scion FR-S
Thu, Mar 17 2016Scion is dead, and the FR-S name passes away with it. The rear-wheel-drive sports coupe isn't gone, though, because it's now the the 2017 Toyota 86. To match the new moniker, the latest model finally has a little extra power and more aggressive styling. The public debut will take place at next week's New York Auto Show, and sales begin this fall. "When we announced the transition of the Scion models to Toyota we hadn't planned on changing the names of our cars, but by popular demand, for our sports car, we decided to adopt the global name of 86," said Toyota Division Group Vice President Bill Fay. The 2.0-liter boxer-four's output grows to 205 horsepower and 156 pound-feet of torque – increases of 5 hp and 5 lb-ft – on manual-transmission models. The 86 still isn't the turbocharged rear-wheel-drive coupe of some people's dreams, but at least this is an improvement. (Buyers who opt for the automatic will have to make do with less power and fewer pedals.) Toyota also promises "additional performance" thanks to different gear ratios for the six-speed manual transmission, and there's now Hill Start Assist Control. New shock tuning and spring rates will affect the handling, too. The 86 wears a meaner look than the outgoing FR-S. The biggest change is a new front bumper with a large intake that stretches across the coupe's width, and the two sharp points along the bottom look like teeth ready to chomp down. Toyota also replaces the headlights and taillights with LED units. The twist-spoke wheels are a great accompaniment to the more aggressive look, too. The tweaks are more modest inside, including silver stitching and new materials for the dashboard and doors. Toyota will also display the C-HR crossover concept again in the Big Apple. We won't see the production version until later this year, and sales won't begin until spring 2017 as a 2018 model. Related Video: Toyota to 86 the FR-S Name New Toyota 86 and Charismatic C-HR Concept on Display at New York Auto Show TORRANCE, Calif., March 17, 2016 – With its new home comes a new name and more. The former Scion FR-S will debut as the 2017 Toyota 86 at the New York International Auto Show with interior and exterior changes, as well as suspension and powertrain upgrades. The new Toyota 86 will go on sale at all Toyota dealerships this fall.
In the wake of Scion, who will dare to be 'different?'
Wed, Mar 16 2016When Scion launched in 2003, it brought the promise of something "different" – affordable, unique vehicles for the North American market. For a while, Scion delivered on that promise. The "box it came in" xB, the full-glass-roof tC, unconventional marketing, in-dealer "aftermarket" customization options, and no-haggle pricing were Scion specialties. Over the years Scion seemed to lose sight of the original promise, with new product becoming more mainstream and less interesting. By the time the fun-to-drive FR-S arrived, practically all other innovation had left the building, replaced by badge engineering. Sadly Scion is soon to be no more although most of it's current offerings will be rebadged and sold as Toyota's starting in 2017. Scion's website still claims it has been "different since day one," but with Scion gone, which manufacturer is likely to bring us something affordable, funky, fun, and "different" in the near future? Caveats: I am Limiting the scope of this article to mainstream manufacturers, or those who sold at least 500,000 vehicles in the US in 2015. Since the average transaction price of a new vehicle in the US is around $30,000 I am only including those companies who are playing in this neighborhood. Here are my selections in order from least likely to be "Different" to most likely. Least likely to bring something "Different" - Ford and VW Ford Mo Co - This is where the hate mail begins, but if you think about it, the current regime at Ford is about as conservative as you will find. This is not necessarily a criticism, as the cars for the masses approach has worked well for Ford and their stakeholders. But outside of the few hotted up Mustangs, Fiesta's, F150's and Focus, Ford does not veer out of it's volume model zone. I don't see this changing, Ford will continue to sell you a variety of F150's, a Taurus, Fusion or Focus and even a gaggle of SUV's. But Ford will not rock the boat by veering into the niches with unusual affordable US models. When was the last time you saw a not-for-production concept out of Ford? VW Group - In America Volkswagen can be counted on to bring the conventional. Outside of the New Beetle and EOS convertible, Volkswagen has recently only sold mainstream vehicles. You can buy a Golf (They did go crazy and call it the Rabbit for a bit) Jetta, Passat, Tiguan or Touareg. Nothing in that lineup with the possible exception of the Beetle could be considered an unusual or niche product.
