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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.

Toyota preparing Scion-badged Nissan Juke fighter

As we've said on multiple occasions, the sub-compact crossover market is The Next Big Thing™. With that in mind, Toyota's lack of a competitor to the new breed of super-small, super-cute crossovers like the Nissan Juke, Honda HR-V, Mazda CX-3, and Jeep Renegade has been especially glaring. But as these photos show, the hole in the Japanese giant's lineup could soon be filled. Our spies captured this heavily disguised prototype testing in the deserts of the American southwest, signaling that Toyota is preparing to wade into the Nissan Juke's space by offering a tiny, but very heavily styled crossover of its own. Our spy photographers call the cute ute's look "aggressive," citing inspiration from the Toyota C-HR concept from the 2014 Paris Motor Show. Based on the meaty wheels and tires and what we can see through the camo, we're inclined to agree with their assessment. Underneath that sheet metal, we're told the new car rides on Toyota's new NGA platform. Like the Juke, a four-cylinder engine and continuously variable transmission will be on offer, although there's no telling whether Toyota will follow its rival's enthusiast beat and offer a six-speed manual version. What we find most interesting about all of this conjecture, though, is what it means for Scion, rather than its parent. Introducing a small crossover is the next logical step for Toyota's troubled sub-brand, and would serve as a delectable followup to the recently released iA sedan and iM hatch. Such a three-model lineup, when combined with the enthusiast-oriented FR-S, would transform Scion into a force to be reckoned with in the entry level space. Supporting this conjecture isn't too hard, either. As the spy photos show, this camo'd tester is being supported by a xB, the closest thing Scion (or its parent company, for that matter) have to a sub-compact CUV. It's unclear just when this new model will make its debut, but if Toyota hopes to make inroads into this popular new segment, this CUV will need to arrive before its extremely competent rivals can establish a solid foothold. Related Video:

Toyota and Subaru file patents for performance FR-S and BRZ

People have longed for a more powerful version of the Subaru BRZ, Scion FR-S, and Toyota GT86 since the triplets arrived on the market. So far, neither partner in the deal has launched a model to fully satiate that hunger. However, the Japanese patent office recently approved documents from Toyota for the design of a vehicle that looks just like the Subaru STI Performance Concept (pictured above). According to AutoGuide, the filing also gives Fuji Heavy Industries credit for the design. The STI Performance Concept debuted at this year's New York Auto Show as an early step in STI's attempt to expand its reach here. The BRZ-derived coupe featured a body with a ground-scraping front bumper, tweaked headlights, wider fenders, a massive rear wing, and diffuser with a center-exit exhaust. All of these elements also show up on the patent renderings. The concept was just as exciting under the hood because STI installed a 2.0-liter, turbocharged boxer four-cylinder from its GT300 racer, and upgrades for the chassis, suspension, and brakes came from the Japanese market's BRZ tS. While the coupe made hearts race, the company was clear it didn't necessarily plan to build the model. Patent filings aren't a guarantee for production, and even if this one does arrive in showrooms, it might not come to the US. That's because Subaru and Toyota have a history of creating Japan-exclusive versions like the tS or Style Cb. That being said, spy shots have revealed a camouflaged GT86 testing in Europe, and rumors indicate more power from the engine. Subie's boss has even confirmed the existence of a partnership to create a next-gen model. Related Video: