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Toyota to offer sedan version of GT 86?

Sources in Australia are reporting that we'll be seeing a small, rear-drive sedan from Toyota, based on the GT 86/Scion FR-S. Yes, a convertible variant is still in limbo, but a four-door sedan is in the works. It's unclear if the rumored GT 86 sedan would spawn Scion and Subaru variants (it's hard to cross all ten fingers while you type, but we're having a go).
Working with remarks made by the car's chief engineer Tetsuya Tada in his blog and a rendering from Japanese magazine Holiday Auto, the Australian site Motoring is claiming that the new model's wheelbase will grow about four inches over the current GT 86's 101.2-inch wheelbase.
Besides the larger overall space between the axles, the sedan will offer a more potent engine option over the current 2.0-liter, flat-four. Promising 268 horsepower, which is a big jump over the current car's 200 ponies, the new powertrain will be derived from the Hybrid R setup, shown at the Frankfurt Motor Show. If, like us, you're reaching for the salt, and we don't blame you.

Scion was slain by Toyota, not the Great Recession

Scion didn't have to go down like this. Through the magic of hindsight and hubris, it's easier to see what went wrong. And what might have been. What the industry should understand is this: Scion wasn't a losing proposition from the get-go. Its death is due to negligence and apathy. This is more than just the failure of a sub-brand. It's the failure of a company to deliver new and compelling products over an extended period of time. Toyota will point to the Great Recession as the reason it hedged its bets and withdrew funding for new vehicles, instead of using that as an opportunity to redouble efforts. This was as good as a death warrant, although myopically no one realized it at the time. Sadly, GM's Saturn experiment was a road map for this exact form of failure. No one at Toyota seemed to think the Saturn experience was worth protecting their experimental brand from. Or they weren't heard. Brands live and die on product. Somehow, Scion convinced itself that its real success metric was a youthful demographic of buyers. It seems like this was used to gauge the overall health of the brand. Look at the aging and uncompetitive tC, which Scion proudly noted had a 29-year-old average buyer. That fails to take into account its lack of curb appeal and flagging sales. Who cares if the declining number of people buying your cars are younger? Toyota is going to kill the tC thirteen years [And two indifferent generations ... - Ed.] after it was introduced. In that time, Honda has come out with three entirely new generations of the Civic. Scion wasn't a losing proposition from the get-go. Its death is due to negligence and apathy. At launch, the brand could have gone a few different ways. The xB was plucky, interesting, and useful – a tough mix of ephemeral characteristics – but the xA didn't offer much except a thin veneer of self-consciously applied attitude. That's ok; it was cute. Enter the tC, which managed to combine sporty pretensions with decent cost. It took on the Civic Coupe in the contest for coolness, and usually managed to win. More importantly, an explicit brand value early on was a desire to avoid second generations of any of its models, promising a continually evolving and fresh lineup. At this point, the road splits. Down one lane lies the Scion that could have been. After a short but reasonable product lifecycle, it would have renewed the entire lineup.

2014 Scion tC

Once upon a time, the Scion brand sought to bring more youthful buyers into the Toyota stable. In the early 2000s, Scion launched with its plucky xA and xB hatchbacks, and a lot of people bought into its affordable, customizable, funky lineup - myself included. I was once the proud owner of a 2006 xB, and though the box-on-wheels wasn't really a proper enthusiast machine by any means, I loved its unique driving dynamics, clever packaging and fresh style.
Following those two hatches, Scion released its tC coupe - a modestly sporty little thing that stayed true to the brand's core values of being affordable, neat-looking and endlessly customizable. People really dug the first-generation tC, and with good reason - it offered a bit more personality than a comparable Honda Civic Coupe, effectively the only other two-door compact then on the market from Japan. And for folks who wanted a sporty, low-cost two-door, the tC was a pretty decent buy.
But then Scion changed. The xA was killed and the comparatively frumpy xD bowed as its replacement. The xB was totally renewed, but it got bigger, heavier and less attractive in the process. And then after a few years of standing idle (will we ever see xD/xB replacements?), Toyota birthed the Scion FR-S - a properly sporty, enthusiast-minded rear-drive coupe created with the help of Subaru. I really dig the FR-S - if I had to buy something from the Toyota/Lexus/Scion stable, it's easily the car I'd want. But by offering a properly good two-door package with its new coupe, where has that left the older, front-drive tC?