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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.

NHTSA may investigate new Toyota unintended acceleration case

After paying a $1.2-billion settlement to the US government last year, Toyota largely put the unintended acceleration recall behind it. Although, there were still some civil lawsuits to handle. A new case where the owner of a 2009 Lexus ES350 is petitioning the National Highway Traffic Safety Administration to open another analysis could draw the issue back to the forefront. Investigators are still deciding whether to research these claims further, though. According to this petition, the owner's wife was driving the ES350 in February 2015. While pulling into a parking space, the sedan allegedly surged forward, and there was a low-speed accident. The claim asserts there are at least two other similar cases in NHTSA's database: one in a 2009 Camry in 2009 and another in a 2010 Corolla in 2014. Specifically, this person wants an "investigation into low-speed surging in different models of Toyota automobiles in which the car starts accelerating and the engine RPM increases even when the accelerator pedal is not depressed," according to the agency. NHTSA will do further research into this person's claim and will decide whether to conduct a full investigation into the alleged issue. This won't be the first reappraisal of unintended acceleration in Toyotas by the agency in recent months, though. Between September 2014 and May 2015, NHTSA evaluated a similar petition with allegations covering 2006-2010 Corollas, and the government body decided to deny that one because the problem couldn't be replicated. Related Video: INVESTIGATION Subject : Low-speed surging Date Investigation Opened: JUL 09, 2015 Date Investigation Closed: Open NHTSA Action Number: DP15005 Component(s): VEHICLE SPEED CONTROL All Products Associated with this Investigation close Vehicle Make Model Model Year(s) LEXUS ES350 2009 Details Manufacturer: Toyota Motor Corporation SUMMARY: In a letter dated June 19, 2015, a consumer petitioned the National Highway Traffic Safety Administration (NHTSA) for an "investigation into low-speed surging in different models of Toyota automobiles in which the car starts accelerating and the engine RPM increases even when the accelerator pedal is not depressed." The petition was prompted by a February 2015 crash involving a model year (MY) 2009 Lexus ES350, which allegedly surged as the petitioner's wife was pulling into a parking spot.

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.