Scion (automobile)

This article is about the car division of Toyota. For other uses, see Scion.
Scion
Division of Toyota
Industry Automotive industry
Fate Merged into Toyota
Founded June 9, 2003 (2003-06-09)
Defunct August 2016 (2016-08)
Headquarters Torrance, California, U.S.
Area served
 United States and Canada
Key people
 Andrew Gilleland (VP, US)[1]
Parent Toyota
Slogan What Moves You?
Weird, right?
Website Scion.com

Scion is a marque of Toyota started in 2003 and will cease production by the end of 2016. Designed as an extension of Toyota's efforts to appeal towards younger customers, the Scion brand primarily featured sports compact vehicles (primarily badge engineered from Toyota's international models), a simplified "pure price" model, and eschewed trim levels in favor of offering a single trim for each vehicle with a range of factory and aftermarket options for buyers to choose from to personalize their vehicle. The Scion name, meaning the descendant of a family or heir, refers both to the brand's cars and their owners.[2] The brand first soft launched in the United States at selected Toyota dealers in the state of California in June 2003, before expanding nationwide by February 2004. In 2010, Scion expanded into Canada. In an effort to target the generation Y demographic, Scion primarily relied on guerrilla and viral marketing techniques.

Scion was originally launched with promises of short product cycle and value based partly on low dealer margins, which became difficult to keep as sales fell after the economic downturn.[3] On February 3, 2016, Toyota announced that it would discontinue the Scion brand in August 2016, with selected models to be re-branded as Toyota vehicles for the 2017 model year.[4]

History

In 1999, Toyota launched Project Genesis, an effort to bring younger buyers to the Toyota marque in the United States.[5] This project aimed to create a "marque within a marque" in sales and advertising strategy for compact and coupe models sold by Toyota.[5] The effort, which included the introduction of the Toyota Echo economy car, along with late generation Toyota MR-2 and Toyota Celica models, was judged unsuccessful and cancelled in 2001.[5] In response, Toyota chose to launch a separate marque, an effort called Project Exodus. A Los Angeles-based digital design company, Fresh Machine, was retained by Toyota to develop the brand, logo, and website. This project became known as Scion.[5][6] Toyota had previously participated in a project in Japan with other Japanese companies who attempted to market products to younger buyers. Toyota manufactured three vehicles under the WiLL brandname, which were exclusive to Toyota NETZ Store Japanese dealerships.

Scion xA

Scion is marketed as a youth brand and was first introduced in March 2002, at the New York Auto Show. There were just two concept vehicles, the bbX (which became the xB), and the ccX (which became the tC).[7] The 2004 xA and xB were unveiled at the Greater Los Angeles Auto Show on January 2, 2003. They were available only in 105 Toyota dealerships in California at their initial launch on June 9, 2003. The subsequent rollout of the brand to the South, the Southeast, and the East Coast occurred in February 2004. Scion vehicles were available nationwide in June 2004, coinciding with the release of the 2005 tC.[2] On December 16, 2006, Scion unveiled the next-generation xB, based on the t2B concept, and the new xD, successor of the xA, at an invitation-only, no-camera event in Miami. Both cars were then publicly unveiled on February 8, 2007 at the Chicago Auto Show.[8]

Scion Hako concept

In September 2010, Scion expanded into Canada,with vehicles offered at 45 selected dealers starting in Toronto, Montreal, and Vancouver, followed by other cities. Launch models included the tC, xD, and xB.[9] The first new Scions were shown in Canada at the 2009 Montreal International Auto Show.

Struggles

Sales of the Scion brand were down to a low of 45,678 for the 2010 model year, compared to over 170,000 for 2006. The management tried to resuscitate the brand, hoping to sell 35,000 to 45,000 tC in a year after the model was redesigned for 2011.[10] The iQ's sales have dropped more than 60% from 2012, and the xD's sales are projected to be under 9,000 for 2013. In late 2013, Toyota announced that Toyota dealers can drop the flagging Scion marque without penalty (though this could be a step away from the previous penalties of not adhering to the "Pure Price" policy within Scion).

In 2015, Scion released the iM hatchback, based on the international Toyota Auris.[11] and the iA sedan, based on the Mazda Demio.[12] At the same time, the iQ, xB, and xD were discontinued.[12]

Discontinuation

On February 3, 2016, Toyota announced that the Scion brand would be phased out after the 2016 model year. The FR-S, iA, and iM will be re-badged as Toyota models for the 2017 model year, while the tC will be discontinued entirely. The upcoming C-HR will be also rebranded as a Toyota. The change is not expected to cause disruption to service options, as Scion models were sold and serviced at Toyota dealerships.[4][13][12] The Scion FR-S will be renamed as the Toyota 86 in North America instead of Toyota FR-S as was initially reported.[14][15][16]


Lineup

Scion tC
Scion iQ

Scion currently has five models: the second-generation tC, a 3-door liftback based on the European-marketed Toyota Avensis sedan; the second-generation xB, a 5-door box-shaped compact wagon sold as the Toyota Corolla Rumion in the Japanese market; the iQ, an ultra-compact city car first going on sale in the western United States in December 2011;[17] the xD, a 5 door-subcompact car that is sold in Japan as the second generation Toyota ist, which is based on the Yaris platform with the tenth-generation Corolla's engine;[18] and a rear-wheel drive sport car, the FR-S.

In April 2012, Jack Hollis (Vice President of Scion) announced that the xB and xD will be dropped after 2012, supposedly in favor of all new models from Toyota's hatchback division, Daihatsu.[19][20] In the meantime, Scion will focus its sales heavily on the iQ passenger car and the FR-S sports coupe, alongside the second generation tC. As of April 2013, both the Canadian and US Scion websites continued to sell the xB and xD with mild facelifts.[21] Scion announced in June 2015 that the xB would be dropped from the lineup,[22] presumably to make way for the forthcoming iM hatchback. On February 3, 2016, Toyota announced that it would discontinue the Scion brand in August 2016, with selected models to be re-branded as Toyota vehicles for the 2017 model year.

Pricing, accessories, and availability

Scion uses sales tools such as "Pure Price" and monospec trim levels with a wide selection of factory and TRD accessories.[24] Extensive market research and testing with generation Y consumers formed the basis of the Scion badge.

Scion xB/Toyota bB

"Pure Price" means that the price posted, whether on the vehicle, in an advertisement, or on a menu display board in the dealership, is the price customers will pay. This includes vehicles, accessories, finance and insurance products.[25] Pure Price is designed to ensure a shorter and simpler process, eliminating all negotiation, though it is commonly seen that dealers will sometimes add aftermarket accessories to the car in order to mark them up and increase profit on the sale. The concept aims to be open and consistent to all customers. The concept is not new to the American market, having been introduced in the early 1990s by the Geo and Saturn marques of General Motors.[26]

Scion's sales approach thus differs greatly from that of the larger Toyota entity. In the United States, for instance, the Toyota Camry is offered with four different trim levels intended for different crowds (budget-conscious, mainstream, sports-oriented and luxury);[27] all Scions, in contrast, have only one standard trim level (monospec) and are designed to be uniquely customized for the driver.[26]

Post-production accessories

Aftermarket customized Scion tC

Scion offers about 150 different accessories;[28] other after-market companies through the Optōmize Scion program offer to add other accessories, as well.[29] For example, one can add a subwoofer as well as different types of decals. The tC had offered an optional supercharger to increase power from 161 to 200 hp (120 to 150 kW), but this option was since discontinued in 2007 due to early failure of the bearings inside the centrifugal blower. All accessories are sold individually, and do not require special packages. However, some options, such as Ground Effects, do prevent other accessories (such as mud flaps) from being installed.

Companies that participate in the Optōmize Scion program include GReddy, OBX, RÄZO, a few car detailing companies, and others.[30]

Release series

Beginning in the second quarter of 2004 with the launch of the 2004 Scion xB RS 1.0 (Release Series 1.0), followed by the Scion xA RS 1.0, Scion decided to create limited edition vehicles pre-packaged with exclusive accessories in limited quantities.[31] Limited Edition vehicles from a marketing standpoint were used to create a buzz for the brand name, with their exterior colors tending to be loud or bright hues (e.g. orange, yellow, red, blue, green).[32] Because of the growing popularity of the Scion product line and the scarce production runs (most dealers only get 2-3 of each RS model), these limited edition vehicles quickly sold out. Pre-ordering is available at each dealership on a first-come, first-served basis. To the customer's benefit, Scion's "Pure Price" MSRP bounds dealerships against market-demand vehicle mark-up.[25] Naturally, resale values of Release Series vehicles command a premium because of their packaged options and scarcity.[33]

Scion xB RS 1.0

2004

2005

Scion tC RS 1.0

2006

2007

Scion xD

2008

Scion FR-S

2009

2010

2011

2012

2013

2014

2015

2016

Target market

The median age of a Toyota consumer was, as of February 2007, 54 years old. Comparatively, Scion's average buyer age is the lowest in the industry, at 39 years old.[57]

Initially, Scion's first two cars (the xA and xB), while unusual for American roads, have been well received among consumers not interested in standard entry-level vehicles.[26] The tC was also well received with brisk sales.[58]

The best selling year of the marque since introduction was 2006 with 173,000 vehicles sold. But sales slid since then to 57,961 vehicles in 2009. By 2010, the tC has become the mainstay of the brand, accounting for over 40% of all Scion sold since the brand was established.[59] In the U.S., sales of the xB have been dropping after the introduction of the second generation, from a peak of over 60,000 to 17,017 in 2011; sales of the xD fell to 9,573 in 2011 from 32,603 in 2006.[60]

Over a million Scion-branded cars were sold. Over 70% were sold to people new to Toyota and just over 50% of the cars sold were to people under the age of 35. Buyers of the tC has the average age of 29, the lowest average age in the industry.[4][61][62]

Advertising

Scion Fuse concept

To advertise Scion, Toyota began a promotional campaign using a form of guerrilla marketing, using posters and ads in movie theaters and TV to direct consumers to its various "want2bsquare" web sites.[24][29] Scion's marketing endeavors extended to sponsorships, such as that of VBS.tv's show, Thumbs Up!, which features David Choe hitchhiking across the United States. Scion sponsored two commercials featuring Concours race car driver Matt Verbin during the Castle Hill Concours d'Elegance, which show him racing a custom painted yellow and orange xB on Cambridge streets. Scion also teamed with Gaia Online, providing the xB,xD, and tC as a choice for user cars, as well as other things across the site.[63]

2006 Scion tC

Scion also uses smaller, regional viral campaigns to reach niche demographics. Online campaigns such as Scion xPressionism allow the user to modify and design his own Scion with graphics, decals, and aftermarket car parts. Online advertising, much of it quirky and offbeat, is part of Scion's marketing mix for both these campaigns and for the launch of new models. Shows like Slick's Picks go around the country interviewing artists, stores, and events; and puts short videos on the site. Scion Radio 17 is an internet-radio initiative that features 17 non-mainstream channels, ranging from rock and hip hop to electro and soul.[64] Scion AV serves as the brand's lifestyle marketing initiative, funding projects in music, art, and film.[65][66]

In August 2008, Scion released the "United by Individuality" ad campaign, featuring over 300 Scion owners' vehicles in various magazine articles, commercials, and billboards. The latest commercial video shows a convoy of Scions parading through the desert in Boulder City, Nevada. These videos and ads can be seen on Scion's website.[67]

Sales

Model 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total
FR-S 0 11,417 18,327 14,062 10,507 54,313
iQ 0 248 8,879 4,046 2,040 482 15,695
tC 28,062 74,415 79,125 63,852 40,980 17,998 15,204 22,433 22,666 19,094 17,947 16,459 418,235
xB 6,936 47,013 54,037 61,306 45,834 45,220 25,461 20,364 17,017 19,789 17,849 16,583 15,223 392,632
xD 10,948 27,665 14,499 10,110 9,573 10,756 9,005 7,377 794 100,727
xA 3,962 24,184 28,033 32,603 9,547 39 3 98,371
iA 7,605 7,605
iM 5,097 5,097
Total 10,898 99,259 156,485 173,034 130,181 113,904 57,961 45,678 49,271 73,507 68,321 58,009 56,167 1,092,675[4]

See also

References

  1. ↑ Bruce, Chris (September 24, 2015). "Andrew Gilleland is new VP of Scion, Murtha moves to Toyota". Autoblog.com. Retrieved January 6, 2016.
  2. 1 2 "Overview: The ScionStory". MSN Autos. 2009.
  3. ↑ Rechtin, Mark (January 20, 2014). "As it matures, Scion is rethinking its image". Automotive News. Retrieved January 21, 2014.
  4. 1 2 3 4 "Scion Brand to Transition to Toyota" (Press release). Toyota Motor Sales, U.S.A., Inc. February 3, 2016. Retrieved February 3, 2016.
  5. 1 2 3 4 Bill Vlasic (April 20, 2003). "Toyota turns edgy to grab Gen Y buyers". Detroit News.
  6. ↑ Nazario (May 20, 2012). "The History of Scion". GearHeads. Retrieved September 29, 2012.
  7. ↑ "New York Auto Show 2002 Highlights - Toyota Scion". Archive.cardesignnews.com. April 2, 2002. Retrieved January 8, 2012.
  8. ↑ "Chicago Auto Show: Toyota unveils the all-new 2008 Scion xD (w/ VIDEO!)". Autoblog. AOL. Retrieved February 3, 2016.
  9. ↑ "Toyota's iQ micro-car coming to Canada as Scion". canada.com. Archived from the original on July 25, 2011.
  10. ↑ Krebs, Michelle (September 15, 2010). "Toyota Seeks to Double Scion tC Sales with New Version". Edmunds. Retrieved January 22, 2014.
  11. ↑ Woodyard, Chris (November 20, 2014). "Toyota's Scion confirms iM hatchback for production". USA Today. Retrieved March 30, 2015.
  12. 1 2 3 Duffer, Robert (February 3, 2016). "Toyota ends Scion brand". Chicago Tribune. Retrieved February 3, 2016.
  13. ↑ Bomey, Nathan. "Toyota kills ailing Scion brand". USA Today. Retrieved February 3, 2016.
  14. ↑ George, Patrick. "The Scion FR-S Will Be Called The Toyota FR-S Instead Of Something Crazier". Jalopnik. Retrieved 2016-02-04.
  15. ↑ "Scion Brand to Transition to Toyota" (Press release). USA: Toyota. February 3, 2016. Retrieved February 8, 2016.
  16. ↑ Wendler, Andrew. "Reality 86’d: Scion FR-S Transitioning Into a Toyota for 2017". Car and Driver. Retrieved 2016-03-17.
  17. ↑ "First Drive: 2012 Scion iQ Review". Automoblog.net. December 16, 2011. Retrieved December 16, 2011.
  18. ↑ "Has Scion Lost Its Mojo?". Auto Trends. August 19, 2008. Retrieved August 22, 2008.
  19. 1 2 3 Schweinsberg, Christie (April 20, 2012). "Scion Killing xB, xD in Favor of All-New Models". WardsAuto. Retrieved May 17, 2012.
  20. 1 2 3 "Report: Scion xB and xD Out, Toyota Yaris and Auris Derivatives In". Automobilemag. Retrieved July 28, 2014.
  21. ↑ Joseph, Noah (November 11, 2012). "Scion Updates the xB for 2013". Retrieved February 8, 2013.
  22. ↑ "Bye, Bye, xB: Scion’s Boxy Hatch to Bow Out". Car and Driver. Retrieved August 2, 2015.
  23. ↑ Nancy, Hubbell. "Scion Brand to Transition to Toyota". pressroom.toyota.com. Retrieved February 3, 2016.
  24. 1 2 "Spotlight on Scion". Bloomberg BusinessWeek. Retrieved September 28, 2009.
  25. 1 2 Miller, Kevin. "Scion's Pure Price Scheme Extends Beyond Vehicles | Autosavant". Autosavant.com. Retrieved September 28, 2009.
  26. 1 2 3 "Edmunds.com Scion Overview". Edmunds.com.
  27. ↑ "Consumer Guide 2008 Camry". Consumerguideauto.howstuffworks.com. October 18, 2007. Retrieved January 8, 2012.
  28. ↑ "About Scion". Tom's Foreign Auto Parts. Retrieved September 29, 2012.
  29. 1 2 "Scion's dilemma: Be hip -- but avoid the mainstream". AutoWeek. Retrieved September 28, 2009.
  30. ↑ "Optomize Scion brands". Optomizescion.com. Retrieved January 8, 2012.
  31. 1 2 "Absolutely Red Scion xA". U-T San Diego. Retrieved September 28, 2009.
  32. 1 2 "2009 Scion xD Release Series 2.0: The Greenest Scion Yet?". Green Car Reports. Retrieved September 28, 2009.
  33. 1 2 "Scion xB Release Series 6.0". Askmen.com. Retrieved September 28, 2009.
  34. ↑ "2004 Scion xB Series 1.0". Topspeed.com. May 17, 2006. Retrieved January 8, 2012.
  35. ↑ Walter J Keegan Jr. "Scion xB Release Series 2.0". Autoblog.com. Retrieved January 8, 2012.
  36. ↑ Walter J Keegan Jr. "Scion xA Release Series 2.0". Autoblog.com. Retrieved January 8, 2012.
  37. ↑ Justin Kaehler. "Scion tC Release Series 1.0". Cars.ign.com. Retrieved January 8, 2012.
  38. ↑ Joel Arellano. "Scion xB RS 3.0". Autoblog.com. Retrieved January 8, 2012.
  39. ↑ "Scion announces pricing for RS 3.0". Theautochannel.com. Retrieved January 8, 2012.
  40. ↑ Justin Kaehler. "IGN Scion tC RS 2.0". Cars.ign.com. Retrieved January 8, 2012.
  41. ↑ "Scion xB 4.0 Final Release". Blogs.motortrend.com. October 16, 2006. Retrieved January 8, 2012.
  42. ↑ "Scion tC Release Series 3.0". Automoblog.net.
  43. ↑ John Neff. "Scion announces xB release". Autoblog.com. Retrieved January 8, 2012.
  44. ↑ Jeremy Korzeniewski. "Scion tC 4.0 in the flesh". Autoblog.com. Retrieved January 8, 2012.
  45. ↑ Damon Lavrinc. "Scion xD limited edition 1.0". Autoblog.com. Retrieved January 8, 2012.
  46. ↑ "Scion Vehicles : Scion Announces Pricing for tC Release Series 5.0 / Toyota" (Press release). US: Toyota. Retrieved April 28, 2009.
  47. ↑ "Scion Murasaki Street Racer". Retrieved December 13, 2009.
  48. ↑ "Scion tC Release Series 6.0 Details". Automoblog.net.
  49. ↑ "Scion Uncovers the Ultra-Blue xB Release Series 8.0". Automoblog.net.
  50. ↑ "2011 Scion xD Release Series 3.0". Topspeed.com. October 8, 2010. Retrieved January 8, 2012.
  51. ↑ "Scion's exclusive on the Scorching Hot Lava xB Release Series 9.0". IrishSushi.
  52. ↑ "Scion's exclusive on the Blizzard Pearl xD Release Series 4.0". IrishSushi.
  53. ↑ Aaron Richardson (June 27, 2011). "Scion tC Release Series 7.0 has red start button, is Zeus-approved". Autoblog.com. Retrieved January 8, 2012.
  54. ↑ "Scion Announces Pricing for 2013 tC Release Series 8.0" (Press release). US: Scion. July 10, 2012. Retrieved December 17, 2013.
  55. ↑ "Heritage Inspires First Scion FR-S Release Series" (Press release). US: Scion. April 16, 2014. Retrieved October 23, 2014.
  56. ↑ "Exclusive Scion FR-S Release Series 1.0 Arrives at Dealerships Nationwide" (Press release). US: Scion. September 8, 2014. Retrieved October 23, 2014.
  57. ↑ Ohnsman, Alan (February 8, 2007). "Asia". Bloomberg L.P. Retrieved January 8, 2012.
  58. ↑ Nauman, Matt (July 16, 2005). "Article: Younger buyers drive strong Scion sales". San Jose Mercury News. Retrieved September 28, 2009.
  59. ↑ Alex Taylor III (September 24, 2010). "Will Toyota's Scion avoid Saturn's fate?". Fortune.
  60. ↑ Nicholas Maronese (April 24, 2012). "Scion killing off xB, xD models". Sympatico autos.
  61. ↑ "Scion Brand to Transition to Toyota | Scion". pressroom.toyota.com. Retrieved 2016-02-05.
  62. ↑ "Toyota Gives Scion Brand the Axe". Motor Trend. Retrieved 2016-02-05.
  63. ↑ "MediaPost Publications Toyota's Scion Goes After Teens in Gaia 06/21/2007". Mediapost. Retrieved September 28, 2009.
  64. ↑ "Scion's Internet Radio Station, iPhone App". Radio Business Report. Retrieved September 28, 2009.
  65. ↑ Halliday, Jean (April 4, 2005). "Scion brand enters the music business". Automotive News. Retrieved February 7, 2013.
  66. ↑ Sisario, Ben (September 27, 2011). "Toyota Scion is Backing Indie Bands to Sell Cars". The New York Times. Retrieved February 7, 2013.
  67. ↑ "ATTIK Launches New Website at Attik.Com - Technology News". Redorbit.com. Retrieved September 28, 2009.

External links

Wikimedia Commons has media related to Scion vehicles.

Official websites: Canada, US

Scion, a marque of Toyota Motor Corporation, road vehicle timeline, 2004–2016
Type 2000s 2010s
456789 0123456
City car iQ
Subcompact car xA xD iA
xB
Compact car xB
tC tC
iM
Sports car FR-S
Concepts/Prototypes
bbX
ccX
Fuse
Hako Coupe
iQ
xB
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