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Toyota CEO Lentz still envisions Scion as a small premium brand

Ward's Auto has published a piece on Scion that further confirms that we really have no idea what to expect from the brand. In speaking with Toyota USA CEO Jim Lentz about what was once firmly intended to be a hip, experimental youth brand, Lentz said, "I still personally believe small-premium is the direction we should be going." We'll walk right on by Lentz's use of the word "still" and focus on "small-premium" with the question: How? As much as we dig the FR-S, nothing in the brand's lineup can get within a whiff of the word "premium." It's even further away from being able to sniff the lifestyle-powered exhaust of a Mini or Fiat 500, and the production version of the forthcoming IM Concept (inset) will only draw it closer to its plain vanilla parent. Of course, Scion could head the premium way, but the amount of time and money needed to make it work would seem to go against everything the brand currently stands for. The murk stays just as murky when Lentz's words are placed next to those of Scion brand VP Doug Murtha, who spoke to Ward's at a different time. Murtha's response to the "small-premium" note was, "He may be having discussions at levels I'm not," and that such intent is "probably a longer-term proposition than we're looking at right now," with planning under way out to 2025. We're already being prepared for the iM to come in under $20,000, which will ensure the "attainability factor" of the "younger audience" that Murtha still views as Scion's base. And at the moment, Murtha is probably focused on adding desirability to the current lineup, halting the 14-percent year-over-year sales slide to a point that's just over half the annual volume necessary for profitability, and making sure he and his dealers have the support necessary to make the required splash with new product. Aside from all that, what might we expect? We know there'll be another product shown along with the production IM at the 2015 New York Auto Show, and Murtha isn't against a small crossover if they can come up with "something appropriately Scion-esque." So... there's that.

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.

PSA: Toyota wants to save your life, needs an hour of your time

Toyota wrote Autoblog to ask if we could spread the word about the Takata airbag inflator recall. Defective inflators remain installed in tens of millions of cars made by 19 carmakers, with manufacture dates that go back to the year 2000. Each inflator compounds the risk of serious injury or death in an airbag-activating crash. With a new ad campaign called "in about an hour," Toyota wants to make sure that unaware owners, or overly busy owners, know they can get their Toyota, Lexus, and Scion vehicles repaired free of charge in about the time it takes to do a load of laundry. The campaign focuses on cities in three so-called Zone A states where hot, humid climates worsen the threat of the ruptured inflators: Los Angeles, Dallas, and Miami. However, every owner everywhere who cares about his life, or his child's life, should at least check to see if his car is affected. All it takes is a quick VIN entry at the dedicated recall site at Toyota.com/Recall. The results will let you know if your car is affected and, if so, locate a local dealer for the free fix. The National Highway Transportation Safety Administration said the Takata affair has become "the largest and most complex safety recall in U.S. history." The numbers so far suggest the recall covers more than 42 million vehicles and more than 60 million airbags. Autoweek keeps an updated list of Takata information, including every make and model on the recall list. Consumer Reports published a list of frequently asked questions covering issues directly related and tangential to the recall. The 19 automakers maintain pages dedicated to the issue; Fiat Chrysler lists every relevant model and how it prioritizes repairs by Zone, Honda says it offers a free rental car while owner cars are repaired, Daimler vans says its fix only takes about an hour. And of course NHTSA serves all owners with its own VIN lookup site. We encourage you to check your vehicle — the life you save could be your own. Related Video: