View Poll Results: Will Scion come back?
Yes, the brand is still a good idea
8
44.44%
No, the brand will stick around but its a bad idea
6
33.33%
No, the brand will eventually be discontinued
3
16.67%
Undecided
1
5.56%
Voters: 18. You may not vote on this poll
Can Scion re-energize its cool factor and its sales?
10-08-10, 08:25 AM
#1
Guest
Posts: n/a
Can Scion re-energize its cool factor and its sales?
I said this spinoff was a waste of money when it debuted. Initial sales had me thinking I was wrong but guess not. Toyota should have put this money into sportier Toyota products instead of a "Trend".
LONG BEACH, Calif. — Willowy models wander around in short shorts, Katy Perry's summer anthem California Gurls blasts from a DJ's stereo, and a nice turnout of Scion devotees wolf down free tacos.
As successful promotions go, this one had all the right stuff. There was just one problem. Though they'd come to see the new tC sports car that went on sale Friday, most members of the Scion Evolution car club invited to the recent event at a Toyota dealership here waxed nostalgic for the 7-year-old brand's first generation of vehicles, especially the boxy xB crossover. Some said they aren't as excited by the current lineup.
"When they came out, they had the quirkiness," explained Matt Sixt, 24, of La Habra Heights, Calif., who drives a bright orange original xB. "People wondered what happened to the weirdness, the unusualness."
PHOTO GALLERY: See photos of Scions
Toyota created Scion to try to bring a little fun and fashion to the auto world. The goal was to attract young buyers with edgy, crazy designs and make them buy Toyota brands for life.
But after peaking in 2006, Scion has endured slipping sales, a second generation of products perceived as less edgy and a lack of buzz that leads to the inevitable question: Has Scion lost its cool factor?
Scion executives and its fans are quick to argue no, that the brand's troubles are merely a lull. A freshening of the lineup is underway. The aggressively styled tC is now out, and an iQ minicar, which is sure to be compared with the Smart Fortwo, is on the way — products they believe can resurrect the patina of cool. Inevitable improvements in the nation's economy, they predict, also will help turn around flagging sales.
Industry observers aren't as sure. "The brand has lost its quirky, youthful exuberance," says James Bell, analyst for Kelley Blue Book. "You can't manufacture trendiness."
Says George Peterson of consultant AutoPacific: "Scion can be considered a noble experiment that possibly failed."
Sales still sliding
Sales of each of the three Scion models so far this year have seen more dramatic drops from the same period last year than any Toyota-brand vehicle except the small, cheap Yaris. Collectively, Scion's three models sold 3,562 vehicles in September, less than half the sales of just one Toyota model, the Prius.
In the same month in 2006, Scion sold five times as many vehicles, Autodata reports.
Back then, Scion sold the tC, a subcompact sedan called the xA and the vehicle that put it on the automotive map, the xB crossover. The xB's squared-off look was considered so odd that it was described as looking like a microwave oven on wheels. No one was more surprised than Toyota executives when it proved to be the image maker for the brand.
But when the xB was redesigned for model year 2008, it was given a more powerful engine, grew by a foot, put on 600 pounds, gobbled 14% more gas and cost about $2,000 more. And the edgy box became a little more conventional. Likewise, the xA was followed by a larger xD sedan that never quite caught on.
Overnight, xB went from being "trendy even beyond Scion's expectation" to being dismissed as just a "small SUV crossover," Bell says. The xD was "stillborn." Shrinking sales have been a drag on the 996 of 1,233 Toyota dealers that sell Scions. The dealers had to buy signage, tools and parts, and train sales workers for the Scion brand; now, they don't have the sales to show for it.
Interestingly, while sales of Toyota products and the company's Lexus vehicles have been zapped by a succession of safety-related recalls this year — 15 so far between them — Scion hasn't had a single recall.
Just as its creators intended, Scion has one of the lowest average ages of buyers of any brand. Buyers of the current tC, for instance, are age 26, on average. But catering to the youth market presents its own unique challenges for Scion, including:
•Credit. The credit crunch was hard enough on average Americans, but it was even tougher on twentysomethings. Scion was having trouble getting many of its buyers qualified for credit to buy new cars even when the economy was robust. Now, the "biggest challenge" is the tightening of credit, says Owen Peacock, marketing communications manager.
•Joblessness. While the national unemployment rate stood at 9.6% as of August — the latest figures until September's are released Friday — workers in the prime Scion-buying ages of 20 to 24 had a 14.9% jobless rate, according to the Bureau of Labor Statistics. For that age group in August 2006, the jobless rate was 8.1%.
Potential young buyers "have been hit hardest by the recession," says Jack Hollis, who heads Scion in the U.S. "They would love to get in a car, but they just can't right now."
•Social networking. Flashy wheels don't mean as much to young adults in the digital age. More are keeping up with friends on Facebook, MySpace or via other online tools instead of driving over to visit them. Hollis says they take the attitude: "You don't need a car anymore because you have a computer."
•Choice. When Scion began, it didn't have much competition for small, cheap, urban commuter cars. BMW's Mini was still getting a foothold, and Smart hadn't yet come to the USA. Now, a raft of small, edgy vehicles are aiming for the same youth market — Ford's Fiesta subcompact, Kia's Soul crossover and others.
Scion can't even leverage its previous advantage of being more Web-savvy than the competition. "Every company is on Facebook," Peacock says. "It makes it more of a challenge to stay ahead."
Looking ahead
If Scion is going to stage a comeback, a redesigned tC is the place to start. The inexpensive sportster is Scion's biggest seller, making up about 40% of sales volume.
Priced starting at $18,275, the new 2011 tC has a bigger engine that pumps out 180 horsepower, 19 more than the 2010 model it replaces. Yet, it gets slightly better gas mileage.
But it's the styling changes that Scion executives tout most. The sporty model has more aggressive looks designed to appeal to young men. Walking around the car in a San Diego garage for a recent press preview, product planning manager Thomas Crahan pointed to the headlights, which he described as looking like "cunning eyes," and a side profile meant to emulate an auto racing helmet.
Crahan says Scion wanted the car to feel like "a middle-weight boxer in a Sean John suit," referring to the clothing line from taste-making entertainer Diddy. No wimps allowed. The new tC says, "I'm here. Get out of my way," Crahan says.
Next will come the iQ, a little car that wowed the 2009 New York International Auto Show when it was lowered from the ceiling in a blaze of music and lights. While appearing like the stubby Smart, it's actually larger, with a back seat that can fit at least one more adult.
Though Smart Fortwo sales now are dragging in the U.S., Crahan says the iQ will succeed because it performs better.
Market mania
Scion's vehicles will change, but one thing that hasn't is the marketing formula. The brand sponsors gallery openings for underground artists and helps plug up-and-coming pop music acts. It hypes its cars online, where buyers can design their own with lots of high-value options. The brand, Hollis says, has to remain "authentic."
That's a quality that seems to appeal to Scion owners gathered Saturday for "Scion Reconnect" at Cabe Toyota Scion in Long Beach, Calif., just the kind of ethnically mixed, youthful community that should make it the perfect target area for the brand.
Though the lot was crowded with tricked-out versions of the original xB, Shawna Enders, 21, of Bellflower, Calif., came in her new-generation 2009 xB. She says she loves it because the baby carrier fits perfectly in the back seat and her Great Dane, Bentley, goes in the rear. Plus, she says, "it looks great."
Others would beg to differ.
"The original xB is still the hottest car,"
said Nilo Miranda, 42, of Anaheim Hills, Calif. His is tricked out in an olive-drab vinyl wrap. "Scion is trying to get back to the original concept."
Miranda says he knows the brand is on the mend because he says he's gotten sneak peeks of some of the models on the way. And, he adds, they are edgy and cool.
Likewise, original xB owner Sixt is optimistic, as well. Though he misses the quirks t
As successful promotions go, this one had all the right stuff. There was just one problem. Though they'd come to see the new tC sports car that went on sale Friday, most members of the Scion Evolution car club invited to the recent event at a Toyota dealership here waxed nostalgic for the 7-year-old brand's first generation of vehicles, especially the boxy xB crossover. Some said they aren't as excited by the current lineup.
"When they came out, they had the quirkiness," explained Matt Sixt, 24, of La Habra Heights, Calif., who drives a bright orange original xB. "People wondered what happened to the weirdness, the unusualness."
PHOTO GALLERY: See photos of Scions
Toyota created Scion to try to bring a little fun and fashion to the auto world. The goal was to attract young buyers with edgy, crazy designs and make them buy Toyota brands for life.
But after peaking in 2006, Scion has endured slipping sales, a second generation of products perceived as less edgy and a lack of buzz that leads to the inevitable question: Has Scion lost its cool factor?
Scion executives and its fans are quick to argue no, that the brand's troubles are merely a lull. A freshening of the lineup is underway. The aggressively styled tC is now out, and an iQ minicar, which is sure to be compared with the Smart Fortwo, is on the way — products they believe can resurrect the patina of cool. Inevitable improvements in the nation's economy, they predict, also will help turn around flagging sales.
Industry observers aren't as sure. "The brand has lost its quirky, youthful exuberance," says James Bell, analyst for Kelley Blue Book. "You can't manufacture trendiness."
Says George Peterson of consultant AutoPacific: "Scion can be considered a noble experiment that possibly failed."
Sales still sliding
Sales of each of the three Scion models so far this year have seen more dramatic drops from the same period last year than any Toyota-brand vehicle except the small, cheap Yaris. Collectively, Scion's three models sold 3,562 vehicles in September, less than half the sales of just one Toyota model, the Prius.
In the same month in 2006, Scion sold five times as many vehicles, Autodata reports.
Back then, Scion sold the tC, a subcompact sedan called the xA and the vehicle that put it on the automotive map, the xB crossover. The xB's squared-off look was considered so odd that it was described as looking like a microwave oven on wheels. No one was more surprised than Toyota executives when it proved to be the image maker for the brand.
But when the xB was redesigned for model year 2008, it was given a more powerful engine, grew by a foot, put on 600 pounds, gobbled 14% more gas and cost about $2,000 more. And the edgy box became a little more conventional. Likewise, the xA was followed by a larger xD sedan that never quite caught on.
Overnight, xB went from being "trendy even beyond Scion's expectation" to being dismissed as just a "small SUV crossover," Bell says. The xD was "stillborn." Shrinking sales have been a drag on the 996 of 1,233 Toyota dealers that sell Scions. The dealers had to buy signage, tools and parts, and train sales workers for the Scion brand; now, they don't have the sales to show for it.
Interestingly, while sales of Toyota products and the company's Lexus vehicles have been zapped by a succession of safety-related recalls this year — 15 so far between them — Scion hasn't had a single recall.
Just as its creators intended, Scion has one of the lowest average ages of buyers of any brand. Buyers of the current tC, for instance, are age 26, on average. But catering to the youth market presents its own unique challenges for Scion, including:
•Credit. The credit crunch was hard enough on average Americans, but it was even tougher on twentysomethings. Scion was having trouble getting many of its buyers qualified for credit to buy new cars even when the economy was robust. Now, the "biggest challenge" is the tightening of credit, says Owen Peacock, marketing communications manager.
•Joblessness. While the national unemployment rate stood at 9.6% as of August — the latest figures until September's are released Friday — workers in the prime Scion-buying ages of 20 to 24 had a 14.9% jobless rate, according to the Bureau of Labor Statistics. For that age group in August 2006, the jobless rate was 8.1%.
Potential young buyers "have been hit hardest by the recession," says Jack Hollis, who heads Scion in the U.S. "They would love to get in a car, but they just can't right now."
•Social networking. Flashy wheels don't mean as much to young adults in the digital age. More are keeping up with friends on Facebook, MySpace or via other online tools instead of driving over to visit them. Hollis says they take the attitude: "You don't need a car anymore because you have a computer."
•Choice. When Scion began, it didn't have much competition for small, cheap, urban commuter cars. BMW's Mini was still getting a foothold, and Smart hadn't yet come to the USA. Now, a raft of small, edgy vehicles are aiming for the same youth market — Ford's Fiesta subcompact, Kia's Soul crossover and others.
Scion can't even leverage its previous advantage of being more Web-savvy than the competition. "Every company is on Facebook," Peacock says. "It makes it more of a challenge to stay ahead."
Looking ahead
If Scion is going to stage a comeback, a redesigned tC is the place to start. The inexpensive sportster is Scion's biggest seller, making up about 40% of sales volume.
Priced starting at $18,275, the new 2011 tC has a bigger engine that pumps out 180 horsepower, 19 more than the 2010 model it replaces. Yet, it gets slightly better gas mileage.
But it's the styling changes that Scion executives tout most. The sporty model has more aggressive looks designed to appeal to young men. Walking around the car in a San Diego garage for a recent press preview, product planning manager Thomas Crahan pointed to the headlights, which he described as looking like "cunning eyes," and a side profile meant to emulate an auto racing helmet.
Crahan says Scion wanted the car to feel like "a middle-weight boxer in a Sean John suit," referring to the clothing line from taste-making entertainer Diddy. No wimps allowed. The new tC says, "I'm here. Get out of my way," Crahan says.
Next will come the iQ, a little car that wowed the 2009 New York International Auto Show when it was lowered from the ceiling in a blaze of music and lights. While appearing like the stubby Smart, it's actually larger, with a back seat that can fit at least one more adult.
Though Smart Fortwo sales now are dragging in the U.S., Crahan says the iQ will succeed because it performs better.
Market mania
Scion's vehicles will change, but one thing that hasn't is the marketing formula. The brand sponsors gallery openings for underground artists and helps plug up-and-coming pop music acts. It hypes its cars online, where buyers can design their own with lots of high-value options. The brand, Hollis says, has to remain "authentic."
That's a quality that seems to appeal to Scion owners gathered Saturday for "Scion Reconnect" at Cabe Toyota Scion in Long Beach, Calif., just the kind of ethnically mixed, youthful community that should make it the perfect target area for the brand.
Though the lot was crowded with tricked-out versions of the original xB, Shawna Enders, 21, of Bellflower, Calif., came in her new-generation 2009 xB. She says she loves it because the baby carrier fits perfectly in the back seat and her Great Dane, Bentley, goes in the rear. Plus, she says, "it looks great."
Others would beg to differ.
"The original xB is still the hottest car,"
said Nilo Miranda, 42, of Anaheim Hills, Calif. His is tricked out in an olive-drab vinyl wrap. "Scion is trying to get back to the original concept."Miranda says he knows the brand is on the mend because he says he's gotten sneak peeks of some of the models on the way. And, he adds, they are edgy and cool.
Likewise, original xB owner Sixt is optimistic, as well. Though he misses the quirks t
10-08-10, 08:28 AM
#2
They need to make the tC be able to compete with the Civic Si. I think Scion is a good idea, but poorly executed. I thought that Scion would be Toyota's outlet for youthful and sporty cars while remaining fuel efficient. They got the youthful part down, but not so much sporty. It has the "looks" but not the performance.
And I have to agree. The original xB was fuel efficient and looked alright IMHO, but the new one looks a lot better but drops in fuel economy, which was a big minus to me.
And I have to agree. The original xB was fuel efficient and looked alright IMHO, but the new one looks a lot better but drops in fuel economy, which was a big minus to me.
10-08-10, 08:38 AM
#3
I think Toyota has done a very, very poor job of handling Scion and all-in-all I think the entire concept is a failure.
In the beginning, Scion was meant to offer fresh new products that never went stale, had a short model life, and would not necessarily transfer over from one generation to the next.
Well...the tC sat on the shelf for six years before being redesigned and received a barely-acceptable refresh, the xB lost it's quirky edge and became too mainstream, and the xD looks like a warmed-over xA. The whole lineup is "blah" and lacks new products, excitement, or the energy that we were originally promised. In the meantime, Toyota and Lexus have actually become more hip and interesting, making Scion look like the failed experiment that it really is.
This is one of those instances where the idea was good but the execution was very poor. Not to mention that I think Toyota would have done just fine to sell these cars with their own logo on the hood and trunk...no need for another "brand" when they are being sold in Toyota showrooms by Toyota sales people.
In the beginning, Scion was meant to offer fresh new products that never went stale, had a short model life, and would not necessarily transfer over from one generation to the next.
Well...the tC sat on the shelf for six years before being redesigned and received a barely-acceptable refresh, the xB lost it's quirky edge and became too mainstream, and the xD looks like a warmed-over xA. The whole lineup is "blah" and lacks new products, excitement, or the energy that we were originally promised. In the meantime, Toyota and Lexus have actually become more hip and interesting, making Scion look like the failed experiment that it really is.
This is one of those instances where the idea was good but the execution was very poor. Not to mention that I think Toyota would have done just fine to sell these cars with their own logo on the hood and trunk...no need for another "brand" when they are being sold in Toyota showrooms by Toyota sales people.
10-08-10, 09:40 AM
#6
i was on the toyota/scion lot yesterday and peeked at the new '11 tc. it looks pretty good in person. from what i see, there were plenty of people interested in it as well as the xD. with the new iQ, i'm not sure that would help sustain the brand. a youthful, sporty, money-conscious group is dwindling i think. teens want that sporty feel...but also a name to their ride, which will typically come at the aid of parents or taking on debt at such an young age. scion already has customizable options for its vehicles, but it's going to take something big to bring in the sales, starting with the tC.
10-08-10, 10:06 AM
#7
How Scion will survive:
Kill the xD. It's a **** poor attempt as a quirky Corolla/Matrix.
Dumb down the xB. Make it lighter, make it cheaper, make it more gas efficient, keep it functional.
Kill the tC.
**gasp!** The tC in it's current form should be badged as a Toyota, not a Scion. If Scion wants a Civic-like or Mini-Cooper-like coupe, it should be lighter, cheaper, more gas efficient (just like what the xB should be). Base Coopers are 118 hp and sell for around $20K!!!
Bring on the iQ. This should be Scion's salvation. It will breathe life back into Scion.
Introduce a cheap hybrid.
xH? Instead of an xD, bring on a small compact Yaris-like hybrid that gets about 100hp, 50+mpg. Keep it around $16k if possible. Basically, make a CR-Zzzzz, but without the sporty performance pretension, and with more gas efficiency.
Kill the xD. It's a **** poor attempt as a quirky Corolla/Matrix.
Dumb down the xB. Make it lighter, make it cheaper, make it more gas efficient, keep it functional.
Kill the tC.
**gasp!** The tC in it's current form should be badged as a Toyota, not a Scion. If Scion wants a Civic-like or Mini-Cooper-like coupe, it should be lighter, cheaper, more gas efficient (just like what the xB should be). Base Coopers are 118 hp and sell for around $20K!!!Bring on the iQ. This should be Scion's salvation. It will breathe life back into Scion.
Introduce a cheap hybrid.
xH? Instead of an xD, bring on a small compact Yaris-like hybrid that gets about 100hp, 50+mpg. Keep it around $16k if possible. Basically, make a CR-Zzzzz, but without the sporty performance pretension, and with more gas efficiency.
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10-08-10, 10:19 AM
#8
Lexus Fanatic
The 2Gen xB gets lower mileage because they upped the size/weight of the car and substituted a 2.4L four for the original 1.5L.
10-08-10, 10:24 AM
#9
Lexus Fanatic
One thing Scion DID succeed in, though, was replicating the Saturn-proved system of no-dicker, list-price selling of new cars. This, of course, not only makes it easy for first-time buyers and those who don't want to haggle like in a bazaar, but also prevents dealer-markups when vehicles are in short-supply and high demand.
Last edited by mmarshall; 10-08-10 at 10:33 AM.
10-08-10, 12:09 PM
#10
You don't think that the 1Gen xA and xB were too much along the lines of funkmobiles? Just because something looks liks a classic shoe-box doesn't necessarily mean that it's going to appeal to youth....in fact, many older buyers bought xBs as well. Granted, though, the xB did combine space efficiency with build quality and good mileage. The 2Gen xB, as others have also noted, got larger, heavier, and more thirsty...but slightly less-funky in the styling.
One thing Scion DID succeed in, though, was replicating the Saturn-proved system of no-dicker, list-price selling of new cars. This, of course, not only makes it easy for first-time buyers and those who don't want to haggle like in a bazaar, but also prevents dealer-markups when vehicles are in short-supply and high demand.
One thing Scion DID succeed in, though, was replicating the Saturn-proved system of no-dicker, list-price selling of new cars. This, of course, not only makes it easy for first-time buyers and those who don't want to haggle like in a bazaar, but also prevents dealer-markups when vehicles are in short-supply and high demand.
can't say about the xA, never care much about that car
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