Toyota ’s youth-oriented brand, Scion , is on a 16-month sales slide, despite two new models in the maker’s three-car line-up. While dealership numbers are growing, sales numbers are falling year-to-year since the brand’s launch in 2003 and on a month-to-month basis compared to 2006 since August.
Last year saw the brand’s total sales fall by nearly a quarter – 24.8 percent – and the significant loss is blamed partially for lengthy model introductions of the redesigned xB model and new xD. January 2006 saw sales of 10,701 vehicles, while the same month in 2007 saw only 7,782 cars roll off lots, and that’s with 60 more dealers selling them, according to Automotive News.
President of Toyota Motor Sales USA, Jim Lentz, points out a mistake in the model changeover strategy as the main culprit behind slowing sales. Toyota stopped producing the original xA, which never returned, and the first-generation xB in December of 2006, with a replacement for the latter not available until March, while the fresh xD didn’t come until mid-year, in August. With the aging tC coupe as the only option, it’s no wonder sales were in the ditch.
“We underestimated the loss of momentum from the dark period for those two vehicles,” Lentz, once in charge of Scion , said.
This year, the second-generation xB sold in greater numbers than the old model in 2007, but less than January 2006 totals. The xD was behind in sales of the xA model, though to be fair, the two cars were fairly different, at least in size, engine displacement and cost.
Analysts are saying more small-car competition is to blame for Scion’s fall as well, with the newly introduced Honda Fit and Nissan Versa and Toyota Yaris taking a chunk out of the market, as opposed to the relative lack of options when Scion first launched.
Lentz adds Scion should include more models to minimize the risk of losing momentum during new model launches like they just saw, with dealers mirroring that statement.
