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Toyota to kill Scion brand [w/video]

Toyota Motor Co. said Wednesday it will kill its youth-oriented Scion brand, ending a 13-year experiment that attracted new customers but ultimately drained resources from the parent company. The FR-S sports car, iA sedan, and iM five-door hatchback will be re-badged as Toyotas starting in August for the 2017 model year, and the tC coupe will end production then. The C-HR displayed at the Los Angeles Auto Show will become a Toyota vehicle when it launches. Scion's 22 dedicated team members will be given opportunities to join Toyota. Toyota says it made the decision in response to customers' needs, noting it finds younger buyers want practicality in addition to the individualistic styling and features that Scion offered. Meanwhile, Toyota's own vehicles have gotten sportier, which the company says appeals to younger buyers. Scion claimed some successes, pointing to its average customer age of 36 years old, with 70 percent of its buyers new to Toyota. Scion sold more than a million vehicles since it launched. Its best year was 2006, when it sold 173,034 vehicles. Sales declined steadily in 2007-08 and then crashed in 2009 during the recession to 57,961 units, before bottoming out in 2010 with only 45,678 sales. "This isn't a step backward for Scion; it's a leap forward for Toyota. Scion has allowed us to fast track ideas that would have been challenging to test through the Toyota network," said Jim Lentz, founding vice president of Scion and now CEO, Toyota Motor North America. "I was there when we established Scion and our goal was to make Toyota and our dealers stronger by learning how to better attract and engage young customers. I'm very proud because that's exactly what we have accomplished." While Scion never recovered from its drastic sales decline, it served as a test bed for marketing and dealer tactics that helped its parent company. Scion tried out no-haggle pricing, a streamlined option plan (some cars had only two choices: color and transmission) and a pre-paid maintenance plan. "We appreciate our 1,004 Scion dealers and the support they've given the brand," said Bob Carter, Toyota senior vice president of automotive operations. "We believe our dealers have gained valuable insights and have received a strong return on their investment.

2016 Scion iM is the return of the Corolla Wagon

If you were expecting the Scion iM Concept to magically leap into production unchanged, well, you're a lot more optimistic than most. Predictably, Scion has toned down the production iM, revealing a vehicle at the 2015 New York Auto Show that's is only slightly spicier than the Toyota Auris on which it's based. Gone are the swollen wheel arches and center-exit exhaust of the concept, but the production version is still a handsome five-door hatchback. Compared the Euro-market Auris, first seen in 2012, the iM gets a more aggressive front end treatment. The angular grille and larger lower intakes and grilles are home to hexagonal inserts and gloss-black accents. Fitting with Scion's single-spec single-price sales model, 17-inch wheels come standard. The alloys are are wrapped in low-profile tires, which Scion describes as "fat." Flared side skirts run into the rear bumper, which sits well below a prominent set of taillights and a smallish rear window. The iM's sole engine is a 1.8-liter gas-powered four-cylinder. If that sounds familiar, it's because it's the same 2ZR-FAE engine found in the Corolla Eco model, and features continuously-variable valve timing and lift. With 137 horsepower, the iM cedes 3 ponies to its Toyota sibling, although we don't know if the torque figures are the same. Fuel economy, estimated at 37 mpg highway, is actually 2 mpg better than the Corolla Eco. Again, like the Corolla, the iM can be had with a continuously variable transmission. But fans of fun can enjoy a good ole' six-speed manual, something not available in the Corolla's hotter engine. As for the CVT, Scion claims it's been "sport-tuned for driving." The so-called CVTi-S features both a Sport mode – more aggressive transmission behavior and a more sporting steering sensation – and a manual setting with seven stepped shift points. The 2016 iM is expected to start at around $20,000, making it a potential challenger for the likes of the Ford Focus, Mazda3, Subaru Impreza and Volkswagen Golf Sportwagen. Deliveries should start this fall. Check back tomorrow for more details, as well as a full set of live photos. Until then, scroll down for the official press release.