Is it the end of Scion? Brand loses sales as 2nd-generation models struggle
03-03-08, 06:48 AM
#1
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Is it the end of Scion? Brand loses sales as 2nd-generation models struggle
Is it the end of Scion? Brand loses sales as 2nd-generation models struggle
Posted on: March 3rd, 2008
The youth is no longer buying the hip-hopness of the xB, xD or the tC. Scion sales have been dropping for the past 16 straight months even with the two new redesigned models in showrooms since August. Sales peaked in 2006 while 2007 sales fell 24.8 percent to 130,181 units.
“We seem to be having more sales peaks and valleys than previously,” said Farlon Smith, general manager of Beechmont Toyota-Scion in Cincinnati.
Scion used to easily move 15,000 to 20,000 units per month, but January sales were a depressing 7,782.
Scion originally had 856 dealers in January of 2005, but as sales increased, so did the number of dealers. In January 2006, Scion sold more than 10,000 units with about 60 fewer dealers than it has now.
Toyota insiders have begun questioning whether the brand was built to last as sales per dealer decline faster than the overall volume.
Source: Automotive News (Subscription Required)
Posted on: March 3rd, 2008
The youth is no longer buying the hip-hopness of the xB, xD or the tC. Scion sales have been dropping for the past 16 straight months even with the two new redesigned models in showrooms since August. Sales peaked in 2006 while 2007 sales fell 24.8 percent to 130,181 units.
“We seem to be having more sales peaks and valleys than previously,” said Farlon Smith, general manager of Beechmont Toyota-Scion in Cincinnati.
Scion used to easily move 15,000 to 20,000 units per month, but January sales were a depressing 7,782.
Scion originally had 856 dealers in January of 2005, but as sales increased, so did the number of dealers. In January 2006, Scion sold more than 10,000 units with about 60 fewer dealers than it has now.
Toyota insiders have begun questioning whether the brand was built to last as sales per dealer decline faster than the overall volume.
Source: Automotive News (Subscription Required)
03-03-08, 07:25 AM
#2
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I personally expected this to happen and stated so when this new generation of models came out. they promised to keep things fresh by offering models that were totally different from the model that preceded it but they didn't. They took the previous model and made it bigger with much lower fuel efficiency while increasing prices. Very poor execution for the second generation models ( and they managed to make them look uglier).
03-03-08, 07:27 AM
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Toyota admitted a long time ago that it knew Scion sales would be cyclical. Toyota has also stated that they would intentionally keep Scion a niche brand, saying if sales got high enough they would supply-limit Scion volume.
Yes Scion sales are down, but FYI xB sales were up in January. The tC is an old model so it's expected it's sales would be down. Scion needs a tC replacement soon.
Yes Scion sales are down, but FYI xB sales were up in January. The tC is an old model so it's expected it's sales would be down. Scion needs a tC replacement soon.
03-03-08, 07:29 AM
#4
Gotta remember, Scion is designed for the young market (read BROKE). Usually, they aren't buying the fresh model when it comes out. Normally, they are buying ONE car for the long haul. One car to last from High School to graduating from College. There is no need for the target market to buy new models if the car is reliable and functional for their need. Of course, this isn't including the FLOOD of small, reliable, and HIGHLY efficient cars currently on the market... Scion will survive...
03-03-08, 07:33 AM
#5
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terrible exaggeration on this article. TRDFantasy was correct, the main contributing factor to the sales decline was tC sales since it's a relatively old model. xD sales barely lag behind xA sales, and xB sales are even better than before...
Code:
January
---- CURRENT MONTH --- -- CALENDAR YEAR TO DATE --
DSR % DSR %
2008 2007 CHG 2008 2007 CHG
SCION xA 9 1,758 -99.5 9 1,758 -99.5
SCION xB 3,319 2,833 17.2 3,319 2,833 17.2
SCION tC 2,947 4,413 -33.2 2,947 4,413 -33.2
SCION xD 1,597 0
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03-03-08, 10:35 AM
#9
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Like platform shoes and goofy big hair eventually ugly things go out of fashion again. 
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03-03-08, 11:05 AM
#13
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I like the tC and the Scion CONCEPT is great, especially the zillion customization options AT the dealer. 
03-03-08, 11:26 AM
#14
Last edited by CK6Speed; 03-03-08 at 12:45 PM.