Is it the end of Scion? Brand loses sales as 2nd-generation models struggle
03-04-08, 05:49 PM
#46
Lexus Champion
We currently own the 1st generation xB and think it's a great car. With 30K miles on it now, we're thinking of trading it in for something newer, but the 2nd generation xB is really now very good looking to me.
It's a lot bigger and heavier, two things which are the opposite of what made the original xB fun to drive. The one thing that really bothers me about the new xB is the single reverse light on the bumper. It's terrible and the designers who thought it looks good should really be fired.
The should have at least put another one on the other side.
It's a lot bigger and heavier, two things which are the opposite of what made the original xB fun to drive. The one thing that really bothers me about the new xB is the single reverse light on the bumper. It's terrible and the designers who thought it looks good should really be fired.
The should have at least put another one on the other side.
03-04-08, 05:52 PM
#47
Tech Info Resource
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Guys - xA and xB could be bought as base models for $12k. VERY cheap. Affordable for even someone with not so good credit. I remember because when we bought our first tC in September '04 I marveled at how they could sell them for $16k, and how much cheaper the xA and xB were.
Yes, Scion sells using a fixed price model. There was $900 gross margin in a base model tC sale in '04. All the money for the sales staff is in the dealer installed mods. That's why they encourage it, and why the Scion website let's you "build your own."
Unfortunately Scion sales are way off. The dealership where my friends worked has completely closed its Scion dedicated sales. That entire dealership laid of 1/3 of its staff because business is so slow right now, and they're in a normally pretty busy city in California. I'd hate to see how sales are faring out in the sticks.
Regardless, the value prop for the xA and xB was entirely in economical transportation - cheap to buy, cheap to drive, cheap to maintain. They've moved from this, and now sales are hurting along with the rest of the industry's general downturn following the economy.
Yes, Scion sells using a fixed price model. There was $900 gross margin in a base model tC sale in '04. All the money for the sales staff is in the dealer installed mods. That's why they encourage it, and why the Scion website let's you "build your own."
Unfortunately Scion sales are way off. The dealership where my friends worked has completely closed its Scion dedicated sales. That entire dealership laid of 1/3 of its staff because business is so slow right now, and they're in a normally pretty busy city in California. I'd hate to see how sales are faring out in the sticks.
Regardless, the value prop for the xA and xB was entirely in economical transportation - cheap to buy, cheap to drive, cheap to maintain. They've moved from this, and now sales are hurting along with the rest of the industry's general downturn following the economy.
03-04-08, 06:05 PM
#48
Lexus Fanatic
Welcome to the world of automotive cost-cutting. Unfortunately Subaru, one of my favorite brands, is now into it BIG time.
And take a look there, in the picture, at another cost-cutting move...one big solid-red tailight lens on each side instead of a split red-yellow or red-clear one for the turn signals.
03-04-08, 06:12 PM
#49
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We currently own the 1st generation xB and think it's a great car. With 30K miles on it now, we're thinking of trading it in for something newer, but the 2nd generation xB is really now very good looking to me.
It's a lot bigger and heavier, two things which are the opposite of what made the original xB fun to drive. The one thing that really bothers me about the new xB is the single reverse light on the bumper. It's terrible and the designers who thought it looks good should really be fired.
The should have at least put another one on the other side.
It's a lot bigger and heavier, two things which are the opposite of what made the original xB fun to drive. The one thing that really bothers me about the new xB is the single reverse light on the bumper. It's terrible and the designers who thought it looks good should really be fired.
The should have at least put another one on the other side.
08-04-08, 10:55 AM
#50
Update
Going MainStream: Scion's Newest Problem
Although Toyota’s youth-oriented Scion brand launched with a bang in 2003, the funky brand has been on the skids for the last two years or so. Scion is now coming to the first crossroads in its short existence, with no clear path laid out before it.
Many industry experts speculate that Scion’s sales slide could be the direct result of the brands original claim of being a ‘youth’ brand. While Scion successfully targeted the 18 to 24 year old demographic for the first three years of its existence, Scion’s average buyer age has been steadily increasing since 2006.
Before gas hit $4 a gallon, Scion had experienced 17 straight months of declining sales. April and May saw sales improve dramatically – by 41.5 and 28.4 percent, respectively – but sales once again dipped in June.
The probable cause for Scion’s lackluster sales? It is turning into a mainstream brand. By labeling itself as a youth brand, Scion has basically painted itself into a corner. It’s very difficult to keep up with the latest trends and when 18 to 24 year olds see grandparents driving the same car they are, it tends to turn them off to the brand. “If we could relaunch Scion, I wouldn’t ever have called it a youth brand, because it’s a kiss of death,” Brian Bolain, a former Scion corporate manager, told Automotive News. “It creates problems when you start labeling.”
During the last three months alone, the Scion xD’s average buyer age has increased from 37 to 42 – likely a direct result from rising fuel prices. Scion’s boxy designs also aren’t winning over younger customers. While the xD and xB are seeing their average buyer age climb, the sportier tC is maintaining its 24 year old average.
While there is no specific recipe to get back Scion’s original hipster image, a wider product range could help the brand gain some ground in the youth segment. “A fourth product is essential,” Jack Hollis, Scion’s vice president, said. “It could be an SUV. It could be a hybrid. We want a fourth product that buyers of the other three Scions don’t like.” The upcoming Toyota Yaris five-door should also attract some of the older buyers away from Scions showrooms.
However Toyota decides to handle its youth brand, Scion will likely be going through significant changes in the coming years.
Although Toyota’s youth-oriented Scion brand launched with a bang in 2003, the funky brand has been on the skids for the last two years or so. Scion is now coming to the first crossroads in its short existence, with no clear path laid out before it.
Many industry experts speculate that Scion’s sales slide could be the direct result of the brands original claim of being a ‘youth’ brand. While Scion successfully targeted the 18 to 24 year old demographic for the first three years of its existence, Scion’s average buyer age has been steadily increasing since 2006.
Before gas hit $4 a gallon, Scion had experienced 17 straight months of declining sales. April and May saw sales improve dramatically – by 41.5 and 28.4 percent, respectively – but sales once again dipped in June.
The probable cause for Scion’s lackluster sales? It is turning into a mainstream brand. By labeling itself as a youth brand, Scion has basically painted itself into a corner. It’s very difficult to keep up with the latest trends and when 18 to 24 year olds see grandparents driving the same car they are, it tends to turn them off to the brand. “If we could relaunch Scion, I wouldn’t ever have called it a youth brand, because it’s a kiss of death,” Brian Bolain, a former Scion corporate manager, told Automotive News. “It creates problems when you start labeling.”
During the last three months alone, the Scion xD’s average buyer age has increased from 37 to 42 – likely a direct result from rising fuel prices. Scion’s boxy designs also aren’t winning over younger customers. While the xD and xB are seeing their average buyer age climb, the sportier tC is maintaining its 24 year old average.
While there is no specific recipe to get back Scion’s original hipster image, a wider product range could help the brand gain some ground in the youth segment. “A fourth product is essential,” Jack Hollis, Scion’s vice president, said. “It could be an SUV. It could be a hybrid. We want a fourth product that buyers of the other three Scions don’t like.” The upcoming Toyota Yaris five-door should also attract some of the older buyers away from Scions showrooms.
However Toyota decides to handle its youth brand, Scion will likely be going through significant changes in the coming years.
08-04-08, 01:57 PM
#52
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08-04-08, 02:12 PM
#53
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08-04-08, 04:41 PM
#55
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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).
08-04-08, 09:45 PM
#57
I expected the brand to eventually die. I have never been interested or drawn to their cars. I do not think many people will lose sleep over the loss either.
I am going to guess that the Nissan Cube may take customers away from the Scion Xb owners.
I am going to guess that the Nissan Cube may take customers away from the Scion Xb owners.
08-06-08, 01:14 PM
#58
Hybrid
Scion Struggling, Considering Hybrid Under $20,000
Scion is in trouble and parent company Toyota is being forced to rethink the brand’s funky/youth image. It’s been a year since Toyota has released the second-generation versions of the Scion and the number of young people shopping Scion has dropped dramatically since 2006. It seems like it’s just not cool anymore to own a Scion.
Monthly sales for Scion have been declining since last September. However the streak ended in March 2008 after fuel-prices soared in April and Scion sales shot up 41.5 percent. Sales climbed 28.4 percent in May but were down again in June.
What happened? According to analysts Scion isn’t attracting its targeted audience as well as it had in 2004-2005. Scion executives are now considering something different - more along the lines of a green-image.
On the cards is a new Scion model says Jack Hollis, Scion’s vice president. “It could be a hybrid. We want a fourth product that buyers of the other three Scions don’t like.”
Whatever gets added, Hollis wants the sticker price to stay below $20,000.
Scion is in trouble and parent company Toyota is being forced to rethink the brand’s funky/youth image. It’s been a year since Toyota has released the second-generation versions of the Scion and the number of young people shopping Scion has dropped dramatically since 2006. It seems like it’s just not cool anymore to own a Scion.
Monthly sales for Scion have been declining since last September. However the streak ended in March 2008 after fuel-prices soared in April and Scion sales shot up 41.5 percent. Sales climbed 28.4 percent in May but were down again in June.
What happened? According to analysts Scion isn’t attracting its targeted audience as well as it had in 2004-2005. Scion executives are now considering something different - more along the lines of a green-image.
On the cards is a new Scion model says Jack Hollis, Scion’s vice president. “It could be a hybrid. We want a fourth product that buyers of the other three Scions don’t like.”
Whatever gets added, Hollis wants the sticker price to stay below $20,000.
08-06-08, 07:36 PM
#60
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Well my wife opted for a scion TC as we both wanted to stay with Toyota but yet she wanted a sporty type car. Problem is they didnt really make a nice sporty Toyota car anymore. So she like the look of the new TC loaded and I liked the fact it was toyota parts. I think its a nice lookin car and keeps her happy. Of course we arent the norm buyers as we are looking close to the 40's soon haha.
