It was announced this morning that as of August 2016 Toyota, the parent company of Scion will essentially kill the youth brand and transition their models into the Toyota line up. The good news is that Toyota isn’t killing off any of the cars; just the brand name. In August the FR-S, iA, and iM will be rebadged as Toyotas. I know it sounds like I’m joking but I am being totally serious here. Toyota is really doing this! Why? Well, its hard to say. Toyota attempts an explanation in the press release but if I’m being honest with myself I don’t really see a definitive answer there.
Toyota admits that Scion accomplished its goal for being the “youth” brand and as their own numbers indicate, Scion was exactly that. The average age for a Scion buyer was 36, making them the “youngest brand in the industry”. The average age of a Scion tC buyer was 29 according to their own reports. So, why kill off a brand name that was doing exactly what it was designed to do? According to Toyota this is a “response to customer needs.”
Toyota says their young customers still want the good looks of Scion but also want practicality. Perhaps Scion did its job too well and average buyers felt that a “Scion” can’t be practical. Although since they will still be the same cars I’m not sure changing their names to “Toyota” will make much difference. However, I am not an automotive sales expert and Toyota is one of the biggest car companies on the planet, so they’re probably right to do this in the long run.
While I am sad to see the brand name go, I am interested to see how this move will change things for Toyota. One thing is for sure, now is the time to buy as much Scion-branded stuff from dealerships as you can get your hands on because as time clicks down to August any official Scion-branded merch will become increasingly rare!
What do you think of what Toyota is doing? Do you agree with the move to end the Scion brand? Or do you think Toyota should have left things alone? Let us know in the comments or tweet to us at @MotorworldHype.
Scion Brand to Transition to Toyota
Valuable Insights Will Aid Toyota in Attracting New, Young Customers
TORRANCE, Calif., Feb. 3, 2016 – Scion, established as a separate brand in 2003 as a laboratory to explore new products and processes to attract youth customers, is now transitioning back to the Toyota brand. Scion achieved its goals of developing unique products and processes, and bringing in new, younger customers to Toyota. With more than a million cars sold, 70 percent of Scions were purchased by customers new to Toyota and 50 percent were under 35 years old.
“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.
“We could not have achieved the success we have had without the incredible support of Scion’s customers, dealers and team members, so supporting them throughout this transition process will be one of our top priorities,” said Lentz.
Toyota’s decision was made in response to customers’ needs. Today’s younger buyers still want fun-to-drive vehicles that look good, but they are also more practical. They, like their parents, have come to appreciate the Toyota brand and its traditional attributes of quality, dependability and reliability. At the same time, new Toyota vehicles have evolved to feature the dynamic styling and handling young people desire.
Scion has consistently been the youngest brand in the auto industry with an average age of 36 years old. At 29, the tC sports coupe has the lowest-average age buyer in the industry. The most recent additions to the line-up, the iA sedan and iM 5-door hatchback, are bringing in new buyers with 70 percent being first-time new car purchasers. Additionally, more than 50 percent of iM and iA buyers are under 35 years old.
As part of the brand transition, beginning in August 2016, MY17 Scion vehicles will be rebadged as Toyotas. The FR-S sports car, iA sedan and iM 5-door hatchback will become part of the Toyota family. The tC sports coupe will have a final release series edition and end production in August 2016. The C-HR, which recently debuted at the L.A. Auto Show, will be a part of the Toyota line-up.
The service and repair process for Scion customers will be unaffected by this change as customers will continue to visit Toyota dealerships’ service departments. “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. During this time of transition, we will work closely with them to support this process and help communicate this change to customers.”
Scion’s 22 dedicated team members, who represent sales, marketing, distribution, strategy, and product and accessories planning, will have the opportunity to take on new jobs at Toyota Motor Sales, U.S.A., Inc. in Torrance. Scion regional representatives will assume different responsibilities in their respective Toyota sales offices.
“Scion has had some amazing products over the years and our current vehicles are packed with premium features at value prices,” said Andrew Gilleland, Scion vice president. “It’s been a great run and I’m proud that the spirit of Scion will live on through the knowledge and products soon to be available through the Toyota network.”
Scion Processes – Scion served as a laboratory for products and key sales and marketing processes that have provided valuable lessons for other Toyota brands:
- Pure Pricing – dealers set a price for a car and customers did not need to negotiate
- Mono-Spec cars – providing cars with only two options: transmission and color
- Personalization – offering a large array of accessories to help customers customize their vehicles
- Pure Process – transparent financing process
- Pure Process Plus – an online system so much of the car-purchase process could be completed online
- Scion Service Boost – pre-paid maintenance plan
- Release Series – dynamic life cycle management through special features and options
- Grassroots marketing – initial Scion brand was “discovered” by customers through unique events
Scion Products — Scion has had some outstanding products that have made an impact in the industry including the original “box,” the xB and the FR-S affordable sports car. The tC sports coupe has consistently attracted the youngest buyer in the industry.
Scion Executives — Scion served as an important training ground for Toyota vice presidents, many of whom have been promoted to other roles:
- Jim Lentz — Chief Executive Officer, Toyota Motor North America
- Mark Templin – Managing Officer, Toyota Motor Corporation, Executive Vice President, Lexus International
- Jack Hollis – Group Vice President, Toyota Marketing
- Doug Murtha – Group Vice President, Corporate Strategy and Planning,
Toyota Motor North America
Andrew Gilleland – current Vice President, Scion