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Scion exec admits brand has too many dealerships, may contract network

Despite being conceived by corporate giant Toyota, Scion painstakingly built its reputation on being something of an offbeat, youth-minded brand, working hard to establish individualist, almost hipster-like credentials. So it comes as something of a surprise to hear WardsAuto report that Scion has a whopping 1,000 dealers across America - just 200 fewer than Toyota itself. This, despite a much smaller product portfolio and a sliver of the sales volume.
All those factors may explain why Bill Fay, US group vice president for Toyota, is admitting to the industry publication that its dealer network "might actually go down a little bit." As it stands, the volume end of the equation is probably an even bigger incentive - Scion's sales are way down from the salad days of the mid-2000s, when the brand had fewer models but sold more of them. With the (then) white-hot xB and tC models, Scion shifted 173,034 units in 2006, while Ward's notes the marque's 2013 sales are only at 41,261 units through July. In the story, AutoPacific analyst Dave Sullivan observes that other low-volume brands have far fewer dealer points, noting that Mini has just 115 dealer points and Infiniti has 200. By Sullivan's estimate, he would expect to see 350-500 Scion stores based on its sales figures.
Dealer question aside, the bigger issue is where the brand goes from here, and Fay admits Toyota is studying a number of different strategies, including possibly going "small-premium." Nothing is finalized, though according to Ward's, Fay discounts the idea that the FR-S - the brand's sales bright spot - will drive the brand to consider a more driver-oriented lineup.

Toyota gives dealers permission to drop Scion, shows them FR-S droptop, Juke rival first

We recently heard that Toyota could be looking to shrink its network of Scion dealerships, and now Automotive News is reporting that the automaker has officially given its dealers the green light to dump Scion without any penalties. Currently, Scion has about 1,000 dealers, yet our report from August 8 quotes an industry analyst as suggesting a healthier figure would be between 350 and 500 outlets. But before its current dealers make a decision on whether or not to get rid of the youth-oriented brand, Toyota also showed off a couple potential future products in the pipeline.
The FT-86 Open Concept shown above was revealed back in March at the Geneva Motor Show, and AN says that an FR-S convertible was driven on stage at a recent national Toyota dealer meeting in Atlanta. There has still been no definitive word one way or another as to whether the droptop model will be built, but it could be a good way to follow up to the popular FR-S coupe. Another possible future product is a subcompact crossover, which was shown in drawing form at the meeting, presumably aimed at small CUVs like the Nissan Juke and the upcoming Honda CUV based on the Fit, a model recently previewed by the automaker's Urban SUV concept.

Scion FR-S SEMA showcars salute sun, style

A brand like Scion is sort of a natural fit here at SEMA, what with the customizable schtick that it's trumpeted since being born in 2002. We've already seen some weird takes on the xB, but SEMA's magic wand has once done interesting things to the FR-S, seen here in a quartet of concepts.
Something that kind of piques our interest is this roofless, let-the-sun-in FR-S, but not in a way that we've seen before. Tuner Jeremy Lookofsky of Cartel Customs put the two-tone, topless FR-S together, and his creation also features an all-metal wide body with an integrated rear spoiler. It's decked out in a unique Azzuro California Blue (looks pretty beachy to us) and includes upgrades like a louvered rear window, 19-inch wheels, a center-mounted exhaust, big ol' turbo kit, KW coilover suspension, upgraded brakes, and a super-powerful audio system.
Also featured in FR-S land is the 10th annual Scion Tuner Challenge, in which three tuners received $15,000 to modify the coupe, taking cues from the Release Series 1.0 that debuted earlier this year. The three cars were done up by Super Street magazine, GT Channel, and Speedhunters. A panel of judges will look at the customs and a $10,000 grand prize will be given to the winners.