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Going mainstream: Scion’s newest problem

08/04/2008, 12:58 PM

By Drew Johnson

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.

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08/04, 1:09 PM

posted by:

441Zuke

maybe it isn’t popular because they cars aside from the Tc are ugly and the Tc needs an a serious update in platform and engine choices …. making it rwd would be nice if possible

08/04, 1:19 PM

posted by:

livelyjay

They ruined the xB, that’s why sales have decreased. I never liked the boxy look of the xB, but it was cheap, had good utility, and got great gas mileage. Once they changed it to a more mainstream look and feel, and threw the bigger, less efficient engine in there, sales plummeted. I’ve only seen a few of the new model on the road.

08/04, 1:23 PM

posted by:

howsmydriving

This is a shocking revelation: 18 to 24 years olds don’t want to emulate their grandparents?

Yes, Toyota ruined xB, then they recently increased the price by $500.

08/04, 1:26 PM

posted by:

tzu13

Ditch scion and just bring back the rwd celica.

08/04, 1:31 PM

posted by:

beatusmongous

As bad as the xB was originally, the current xB is hideous. I like different styling, and I actually like the original xB. But even my wife, who hates both, said if she absolutely HAD to choose one, it would definitely be the older one.

08/04, 1:37 PM

posted by:

xyunya

I reckon the article is an example of analysis gone wild. Original cars were popular because they were better looking then current crop. Furthermore, they were popular in the time when fuel efficiency was not a subject of any conversation. At the same time you can’t find Yaris on the dealer lot. Toyota/Scion needs another epiphany: make good looking cars. Amazingly, all age groups prefer good looking cars to bad looking one.

08/04, 1:51 PM

posted by:

megeebee

Personally, I believe the fall at Scion is attributable mostly to the design on the current crop. The TC is as beautiful as it ever was. I love that little car. But the X cars have abondoned “cute” and “quirky” for “bloody-ugly”. There are many other vehicles that offer similar economy of operation that don’t hurt a persons eyes when looking at them.

08/04, 1:54 PM

posted by:

RaineMan

If Scion wants to succeed they need to turn into Toyotas tuner brand. Ditch the big and fugly xB… restyle the tC and put a real engine under the hood… and get some kind of RWD sports coupe to rival the Mustang, Camaro, and Genesis.
Bring back the Supra… PLEASE! They wouldn’t even have to make any changes… just sell the exact same car that went out of production back in 1998 for $20-25k and call it a day. Toyota has got to have the old parts molds sitting around somewhere.

08/04, 1:58 PM

posted by:

HemiRoadRunner

Hmmmmm, maybe the sales dip is because the target audience is 18 TO 24 YEAR OLDS! Most of them DON’T WORK, at least not the kind of paycheck that can buy a new car. Besides, scions are fugly and anyone who buys one should be mutilated.

08/04, 1:58 PM

posted by:

shaver

I guess Toyota execs didnt think GEO could happen to them.
xB = Tracker
Tc = Storm
xA = Metro (I bet chevy dealer still wishes he had some of these 3 cylinder beasts left,46/52 MPG anyone!)

08/04, 2:03 PM

posted by:

beatusmongous

Nice comparison, Shaver, but where does the Prizm fit?

08/04, 2:03 PM

posted by:

RaineMan

An interesting comparison there Shaver. Heck… the only reason anyone buys a tC is b/c Celica is dead.

08/04, 2:10 PM

posted by:

Boxster2.7L

The problem isn’t that Scion is a “youth brand”. Scion is a good brand that was ruined by some awful models in the recent past. The new xD and xB are awful looking. I’ve also had the opportunity to be inside both cars and I must say the interior materials are terrible…all of the plastics are hard and cheap. They were hard and fairly cheap in the old models too, but the price matched that cheapness and the cars felt more solid. These just feel like tin cans.

08/04, 2:13 PM

posted by:

t-ak-box

I have to agree slightly with xyunya. This article is a Gone Wild analysis. With an economic slow down in the US its not to much of a surprise that young people can’t afford a Scion, how youth oriented it may want to portray itself. A portrayal that has been greatly exaggerated. The industry as a whole is experiencing slow sales. I will agree that Scion does need to bring some more fresh models and maybe rethink its option or lack of for some of its current lineup.

08/04, 2:17 PM

posted by:

DeansterTJ

Scion produces ugly cars AND there are more econoboxes on the market than before. Hence the declining sales. Time to make good looking cars and that’s how the problem is solved.

08/04, 2:21 PM

posted by:

shaver

beatusmongous: Ironically the Prizm was a Corrolla rebadge, part of the shared NUMMI plant deal I believe. Way to good a car for GEO or Scion names to carry.

08/04, 2:23 PM

posted by:

ktulu

ha ha ha

prizm is a toyota corolla

08/04, 2:54 PM

posted by:

jonmiles

I still think the concept is right, it’s just the excecution is weak. The redesign of the xB is fugly, and they aren’t staying as agressive as they were with marketing. Old isn’t cool.

08/04, 2:57 PM

posted by:

howsmydriving

You think the interior of Scion is cheap??? They’re MUCH better than Chevy in the same general price range.

08/04, 3:11 PM

posted by:

ryanpstr

I would have to slightly disagree on the “look” of scion cars. I actually think it looks decent. The problem lies in the fact that other manufacturers have caught up with scion and have crowded the market with cheap, customizable cars; and scion has been increasing their price while turning off potential buyers with avg. styling. The older xB had a distinct love it or hate it style while the new one makes you stay on the fence. I say market it to everyone, lower the price, change the engine, and weather the storm. It’s not like scion is the only car manufacturer with declining sales.

And Scion needs a 4th car, a sedan would be nice. I remember a rumor a while back about a scion sedan. What ever happened? 4 door, fuel efficient, great stylin, and fair price.. Look at Kia/Hyundai for a few examples..

08/04, 3:32 PM

posted by:

jayjc08

No, a new vehicle in their lineup is the last thing they need. When Scion first launched with TWO fairly distinctly marketed vehicles, I thought “o.k., pretty cool” despite what they vehicles truly were- re-skinned Toyota Corollas…

When Scion launched the tC, I thought “handsome car, sounds pretty neat, but doesn’t really fit with the other two”

And they’ve targeted their audience pretty well. They still target their intended audience pretty well. But they f.ucked around with the formula that made them famous in the first place.

Lemme start with the xB. The first generation was a small lightweight car. Weighed around 2400 ibs, peppy, easy to modify… a blank canvas. Then they began coming out with modifications, that although mostly went skin deep, made the vehicle a little unique, and for around $18k you could have a unique, peppy vehicle with plenty of space.

But the new one gained more than 600 pounds. Sure, it’s got a bigger engine, but it’s not much faster- only more thirsty. Sure, it’s larger, but it’s not perceived as a “blank canvas” anymore- it’s already got most features that most people want. Pioneer sound system, power everything, more standard features. That’s good and all, but it’s going to attract a lot more customers than what their targeting.

Same goes for the xA/xD.

And their prices have hiked two or three grand from what they originally were. Most kids don’t want to modify something that’s already fully loaded, especially if the price tag is going to be more than if it didn’t have that equipment.

08/04, 3:35 PM

posted by:

jayjc08

Oh yeah, did I mentioned gas mileage? The xB is now the worst in it’s segment. Making it a cheap vehicle to run should be first priority.

08/04, 3:58 PM

posted by:

howsmydriving

Maybe there’s a lesson here: manufacturers should avoid B.S. branding. GM is the worst offender, and how is their stock doing lately?

08/04, 4:44 PM

posted by:

sti parts

I see far more young drivers in Yarii than than the new bloated XB or weird xD. Still love my tC (and I’m older than the target demographic by a decade).

08/04, 5:32 PM

posted by:

The Stig

The most significant change Scion will go through is getting dumped.

08/04, 5:43 PM

posted by:

wagon

If Scion wants to make more sales they should bring the brand to Canada. I don’t know why Toyota does not sell these cars in Canada. Canadians have always loved their small cars, while at the time of brand launch Americans were loving their big Trucks and SUV’s.

08/04, 6:25 PM

posted by:

monte

They should have called it what it really is……a ****box

08/04, 8:04 PM

posted by:

mazdaman

I would like to see them update the tC platform and utilize it to launch a small lineup of sportier alternative compact products to counter Toyota’s bland, mainstream, appliance-like products. A next gen tC that retains the essential character of the current car while offering sportier handling would be a good place to start. A sedan, 5-door, convertible, crossover, and/or a small truck with the same sportier characteristics are possibilities that could be spun off that same platform. I think this would attract new customers much more than the current xD and xB, which wouldn’t be out of place in Toyota’s lineup.

08/04, 10:09 PM

posted by:

jayjc08

wagon- Yeah, because it’s what Americans wanted… is there a problem with that?

08/05, 2:40 PM

posted by:

wagon

There is not a problem with Americans wanting to buy big vehicles. That was why the Sequoia was built. The problem was, Toyota was trying to sell a brand of small cars to people who weren’t interested. It’s like trying to convince a rich man to sell his S Class Mercedes and buy and Chevrolet Malibu. Not going to happen. Toyota should’ve launched this brand in Canada first and if sales were good then move on to the States. Just like the Smart cars did.

08/05, 8:07 PM

posted by:

jayjc08

Hmm… I understand better what you were saying. Sorry, that quick mention just sounded like another negative reference to large vehicles.

Anyways, I understand what your saying, but you also have to understand that that market indeed does exist in the United States. Canada seems to enjoy smaller vehicles more, but you don’t have nearly as large of a demographic as we do in United States, that Scion was targeting. Most kids look at smaller vehicles as having more potential than larger vehicles, I know when I had been looking for my first vehicle, I was looking for something small and efficient, that still looked uhh… thrifty I guess. I don’t know many teenagers that look for large sedans or even SUV’s, not to say there aren’t…

 
 
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