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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.

Mazda-Toyota partnership has us dreaming of a rotary hybrid

As you may have seen, Mazda and Toyota are going to be working a little more closely with each other. In their announcement, the two companies said they'd be building an American assembly plant together, and working on electric vehicle technology. But one of the companies' goals got our mental gears turning: It's listed as "Expand complementary products," and it's left very open-ended. The companies say they "will further explore the possibilities of other complementary products on a global level." These are in addition to Mazda providing the Mazda2 to Toyota as the Yaris iA, and Toyota providing Mazda a commercial van to sell in Japan. So what could these future complementary products be? We have a couple of ideas, one that's ludicrous but awesome (and, sadly, probably won't ever happen), and the other grounded in reality. Let's start with the fun one. What's the one thing Mazda fan has been wanting for years? A rotary sports car, of course! And while Mazda has repeatedly said that it has a small band of engineers plugging away at the spinning triangle problem, the odds of Mazda putting it into production have been slim. The inherent thirst of the rotary would make it tough to introduce when fuel economy regulations have been tightening. Plus, Mazda is a small company that needs to stretch every dollar, and having a one-off engine not based on anything else would be expensive. How could Mazda get around these obstacles? This is where the partnership with Toyota comes in, in our long-shot fantasy. Aside from having deep pockets, Toyota has a wealth of knowledge in the realm of hybrids. Thus, why not a rotary hybrid? Electrifying their oddball motor would fix two issues. One is obviously the fuel economy, since the gas engine wouldn't have to run all the time. The other is in providing torque. Rotaries infamously have little torque, especially down low, so adding an electric motor would allow this hypothetical rotary sports car to have a grunty low end, while still providing the Everest-high redline rotary fans like. The idea would be sweetened with the solid-state batteries that Toyota is developing, which could provide lots of electricity without weighing a ton. The rotary-electric mashup notion isn't totally alien to Mazda, either, since the company created an electric Mazda2 with a rotary engine for a range extender — albeit for different reasons. The company even filed a patent for the rotary range extender recently.

At meeting with automakers, Trump launches new attack on NAFTA

WASHINGTON — Ten American and foreign automakers went to the White House on Friday to push for a weakening of U.S. fuel efficiency standards through 2025, while President Donald Trump used the occasion to launch a fresh attack on the North American Free Trade Agreement that has benefited the companies. A draft proposal circulated by the U.S. Transportation Department would freeze fuel efficiency requirements at 2020 levels through 2026, rather than allowing them to increase as previously planned. Trump's administration is expected to formally unveil the proposal later this month or in June. "We're working on CAFE standards, environmental controls," Trump told reporters at the top of the meeting, referring to the Corporate Average Fuel Economy standards for cars and light trucks in the United States. Trump said he wants automakers to build more vehicles in the United States and export more vehicles. But much of the hour-long meeting focused on NAFTA. Trump blasted the pact involving the United States, Canada and Mexico as "terrible" and noted that negotiations to make changes sought by his administration were ongoing. "NAFTA has been a horrible, horrible disaster for this country and we'll see if we can make it reasonable," Trump said. Automakers have called NAFTA a success, allowing them to integrate production throughout North America and make production competitive with Asia and Europe, and have noted the increase in auto production over the past two decades with the deal in place. They have warned that changing NAFTA too much could prompt some companies to move production out of the United States. The chief executives of General Motors Co, Ford Motor Co, Fiat Chrysler, along with senior U.S. executives from Toyota Motor Corp, Volkswagen AG, Hyundai Motor Co, Nissan Motor Co, Honda Motor Co , BMW AG and Daimler AG met with Trump, as did the chief executives of two auto trade groups. Major automakers reiterated this week they do not support freezing fuel efficiency requirements but said they want new flexibility and rule changes to address lower gasoline prices and the shift in U.S. consumer preferences to bigger, less fuel-efficient vehicles.