Toyota To Scrap Scion Brand

Published: February 7, 2016

Toyota To Scrap Scion Brand, Toyota is pulling the plug on Scion, the funky upstart brand it launched in 2002 to appeal to the finicky younger buyers it was struggling to connect with on its own.

The reason, according to Toyota: It’s no longer struggling to connect with those buyers.

The end will come quickly — and just months after the launch of two vehicles that were seen as critical to reviving the brand. Scion will be discontinued in August, the automaker said today, and its model lineup will be folded into the Toyota brand starting with the 2017 model year.

Scion, which sold more than a million small cars over 13 years, was an early hit with young buyers who perceived Toyota’s offerings as reliable but utilitarian cars for their parents’ generation. From its inception, the brand served as a laboratory for offbeat vehicle, marketing and retail experiments.

But in the aftermath of the global recession and Toyota’s unintended-acceleration crisis, investment in the brand dried up and its product lineup thinned. Moreover, Toyota says, young people are different today and are less likely to try to stand apart from their parents. As a result, the parent brand now commands more respect among today’s younger customers than Scion does.

“Youth buyers are in a completely different position than they were 13 years ago,” Bob Carter, senior vice president of operations for Toyota Motor Sales told Automotive News. “That’s really what’s driving this decision.”

The decision to shutter it may cast it as a historical failure, but Toyota will likely walk away vindicated in its efforts to strengthen its own image among younger shoppers.

“I think when you have to unwind a brand and tell dealers it’s over, I don’t know how on some level you can’t say that’s a failure,” said Karl Brauer, senior analyst for Kelley Blue Book. “But I think it’d be more accurate to call it a learning experience or an experiment that they learned from but in the end proved unsuccessful.”


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