"The case for killing Scion"

[Scaldy]

"The case for killing Scion and setting Prius Free"

Excerpt:
The Sales Data







Scion isn’t doing well. Actually they’re doing horrible.
Sales in 2013 were down 60% from a high in 2006. But not to worry Mr. Toyoda, I have a solution!


1. (Quietly) Kill Scion.
Yes, it’s time to cut the brand loose. Sales are faltering and other than FR-S, the brand doesn’t appear to have any product that will save it.


2. Replace Scion with Prius
Prius has become synonymous with fuel-efficiency and being green. Since the brand expanded the lineup with C and V, they’ve dwarfed Scion’s best year by 60,000 models. Making Prius a standalone brand will allow Toyota to further define and hone the consumer message on efficiency and explore new product offerings.


3. Build Prius CUV, Prius FR-E (EV FR-S) and small (very) light-duty ‘van’... continued in article.


Link: http://www.thetruthaboutcars.com/201...ng-prius-live/

[dave77]

Just make the FRS a Toyota.

[Havsie]

Don't care, Scion has always seemed redundant. I like the idea of Scion and how they essentially bring over JDM designed vehicles, but they could have easily sold the same vehicles with Toyota badges. Probably even more since Scion has a negative stigma of being cheap. GM killed the very similar Saturn brand off and nobody cared, Toyota could easily do the same with Scion.

[dem00n]

I can't feel much sadness, Scion has not much of any pedigree...

[DAEMANO]

Comparing Scion to Prius is nonesense. Scion was never intended to be a high volume brand. Look at 2013 sales (below). Prius has grown from a niche player to high volume due to market conditions (50mpg keeps money in your pocket). When all cars are electric and/hybrid do all Toyotas become a Prius? Toyota should certainly continue to refine the definition of what a Scion is. The FR-S is working as a halo car for Scion. It stopped the giant sales slide caused by Toyotas horrible 2nd gen Scion products. The FR-S also serves as an up-sell/upgrade to TC buyers who might want something closer to a real sports car over a sporty car.

It's looking like Toyota's Scion division has finally found its halo, the FR-S sports car. Not only did Toyota sell 2,684 FR-S cars for the month of June, but the whole five-model lineup saw a 143.1% increase in sales over the same month last year."FR-S is certainly the halo for the brand," says Bob Carter, a Toyota Division group vice president. "It is creating traffic, (and) it is creating a lot of awareness."

Scion sold 8,400 vehicles for the month, the first time it has topped 8,000 in a single month since August 2008. Back then, the brand was riding high with young Gen Y buyers on the strength of its ultra-urban xB box-on-wheels crossover.

The FR-S instantly became Scion's biggest seller even though it is by far the mini-brand's most expensive model. It starts at $24,930 before shipping fees, putting it out of reach of many of the brand's buyers who are either still in college or first jobs. The sports car with a boxer engine was co-developed with Subaru, which sells a virtually identical version as the BRZ.

http://content.usatoday.com/communit...1#.Utwt3_uIbIU

2013 Sales results
Now try comparing Scion sales to other Niche brands, what are the thoughts about killing the ones under Scion? Why not kill off Mini, Volvo, Land Rover, Porsche, Fiat, Jaguar, Maserati, and Bently? Total sales volume is not always the sole objective.

http://www.goodcarbadcar.net/2014/01...ults.html#more

Rank Make 2013 2012 Difference 2013 Market Share 2012 Market Share
#25 Scion 68,321 73,505 -7.10% 0.40% 0.50%
#26 Mini 66,502 66,123 0.60% 0.40% 0.50%
#27 Mitsubishi 62,227 57,790 7.70% 0.40% 0.40%
#28 Volvo 61,233 68,117 -10.10% 0.40% 0.50%
#29 Land Rover 50,010 43,664 14.50% 0.30% 0.30%
#30 Fiat 43,236 43,772 -1.20% 0.30% 0.30%
#31 Porsche 42,323 35,043 20.80% 0.30% 0.20%
#32 Jaguar 16,952 12,011 41.10% 0.10% 0.10%
#33 Smart 9264 10,009 -7.40% 0.10% 0.10%
#34 Suzuki 5946 25,357 -76.60% 0.10% 0.20%
#35 Maserati 4768 2730 74.70% 0.10% 0.10%
#36 Bentley 2872 2315 24.10% 0.10% 0.10%

This thread has a lot more real data than that ridiculously light TTaC article. http://www.ft86club.com/forums/showt...ighlight=Sales

[Tuan]

You could attribute much of the sales decline in the same time period, but especially in 2008 due to the economic recession as well..

[AVodka14]

It doesn't matter to me if they go under. My registration says Toyota anyway. I am in process of replacing everything on the FRS to Toyota. That's what it should have been since the induction of this car in the states.

[Havsie]

Originally Posted by DAEMANO

Now try comparing Scion sales to other Niche brands, what are the thoughts about killing the ones under Scion? Why not kill off Mini, Volvo, Land Rover, Porsche, Fiat, Jaguar, Maserati, and Bently? Total sales volume is not always the sole objective.

Profits are the sole objective in every business. You are listing premium brands that make significantly higher profits than Scion. Scions are sold at the lowest possible prices with a no haggling policy at an attempt to cater to younger consumers. I've read (not sure if it's true) that Toyota makes only a few hundred dollars in profit off of each Scion sold. Compare that to say Rolls Royce, Bentley, or Porsche and then look at the differences. Those cars have options with options added on which are pure profit. A few well optioned 911's can easily bring in more profit than a whole fleet of Scions.

Scion doesn't pull its own weight compared to those niche luxury brands. Look at what GM revealed about Saturn. During the 20+ years of its existence, it did not make any profit. It cost GM money to keep the brand alive which is something you don't want to do when you're running a business.

[DAEMANO]

Originally Posted by Havsie

Profits are the sole objective in every business. You are listing premium brands that make significantly higher profits than Scion. Scions are sold at the lowest possible prices with a no haggling policy at an attempt to cater to younger consumers. .

This is a very simplistic view of how business (especially multinational automakers) run in today's world. Yes profit is the sole objective of an overall company. In the auto business (and many others) how that profit is achieved almost never laid on one marque (especially a niche brand like Scion). Scion is intended to give Toyota a presence that its' primary brand hasn't served in perhaps two decades. You are correct in identifying young buyers. Toyota doesn't view it's brands in a "one size fits all way", but more as a progression of products for people to grow into. Most automakers operate in this manner.

In the U.S. Honda has Acura, Nissan has both Datsun and Infiniti, VW has countless brands that include Bugatti, Lamborghini, Audi, Ducati, and many more brands. Ford, General Motors, Fiat/Chrysler, and internationally the list goes on and on. This is not by mistake. Profit is far from the sole purpose of opening, operating and/or acquiring a business.

There are many examples of this in other businesses just one example is Google with YouTube. YouTube was purchased for $1.65 Billion and is speculated to have cost Google billions over the years in annual operating costs. Google refers to YouTube's operating expenses as "not material" because YouTube's value isn't in how much profit it generates. YouTube dominates its niche and helps to drive membership into other Google services.

Toyota hopes that Scion does something similar. To get young buyers to purchase a Scion, then step up to a Toyota (or Prius if it ever becomes a "brand") when they need something more practical or larger (for a family). Eventually Toyota hopes those now older buyers end up in one of their bigger profit autos (like a big SUV) or marques like a Lexus. Scion introduces young buyers to Toyota where they were previously starting with Honda, Nissan, and GM because previously Toyota offered little to appeal to them.

[speedrye]

The dumbest thing Toyota could do would be to divorce itself from the Prius family. With CAFE standards getting more tough, the Prii really help keep Toyota's average mpg up for the whole line of vehicles.

As for Scion, ehh, I don't much care either way. I think Toyota did it originally as a way to get young buyers with the expectations that those buyers would graduate to Toyotas later in life, but why not just name them "Toyota" to start with? The FR-S is more upscale than most Scions and it's hurt by being badged with a brand associated with cheap cars.

[Tromatic]

The number of people who are embarrassed to be driving a Scion FR-S is amazing.

[DAEMANO]

Originally Posted by Tromatic

The number of people who are embarrassed to be driving a Scion FR-S is amazing.

The same kind of feelings once were felt for Honda, Ford, Dodge RAM, Subaru, Hyundai, Chevrolet, Fiat, Chrysler, Datsun, Cadillac. Brands can outlive a stretch of bad products (like the 2nd gen xB, xD and xA).

[EAGLE5]

That site should be called "The Truth About Our Ignorance of the Automotive Industry." Bunch of ignorant blowhards.

[calmtigers]

I just love that people think a mega car company like Toyota hasnt thought/considered this. Toyota makes fuck tons of money in other cars.

I highly doubt they are a. loosing money b. have not considered this when pricing and c. give a fuck

They lose money with each LFA that they make, look how many fucks they give..

0

why?

Because they can