2011 Scion Xb on 2040-cars

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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?

Toyota profits up 23% on high US sales, despite mounting legal costs

Toyota earned $9.3 billion in net income in the financial year that ends next month. The number beats earlier forecasts and marks a five-year high for the automaker, with both operating income and revenue up by 9.5 percent and 2.5 percent, respectively. Toyota saw quarterly profit enjoy a year-on-year jump of 23.4 percent, with the manufacturer earning more than $1 billion between October and December 2012. The good news comes in spite of the fact that the Japanese automaker actually endured an operating loss in North America, due in part to legal fees.
Toyota is set to pay more than $1 billion to owners who claim their vehicles decreased in value as a result of the company's recent spate of recalls. Even so, all three of the automaker's brands enjoyed a 13.5 percent sales increase in the US in the last quarter, beating the industry average. Toyota faltered in Europe, however, where it earned $99 million in operating profit last year, compared to $111 million in 2011. You can take a closer look at the company's full press release below for more information.

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.