The brand's transformation will begin later this year when the slow-selling iQ city car is given the axe. Initially designed as a smart fortwo-fighter in Europe, the iQ has been a disappointing car for both Toyota and Scion so it will not be replaced on either side of the Atlantic.
The boxy xB will reportedly be replaced by a re-badged version of the Auris (pictured), a Golf-sized four-door hatchback sold in Europe that shares its platform and several other components with the Corolla. Scion's version of the Auris will debut next spring with a brand-specific front fascia, a different interior and a new name.
Sources indicate the station wagon variant of the Auris will not be offered on this side of the pond.
Scion will replace the aging xD with a four-door sedan version of the new 2016 Mazda Mazda2. The car will be built in Salamanca, Mexico, alongside the Mazda2 and the next-gen Toyota Yaris.
Executives at Scion are debating whether to expand the company's lineup with an all-new crossover that would share its platform with the aforementioned Auris. If launched, the yet-unnamed crossover will be smaller than a RAV4 and boast a more aggressive silhouette in order to appeal to a younger target audience. The crossover would be aimed squarely at the upcoming Honda HR-V.
Finally, the tC will carry on with minor changes until a new model arrives in 2016, and the second-generation FR-S is expected to land in showrooms in 2017 at the earliest. Contrary to earlier rumors, the next FR-S will again be developed jointly by Toyota and Subaru.
Toyota hopes Scion's ambitious model offensive will allow it to noticeably increase its market share. The company's annual sales have been steadily declining since peaking at 173,034 units in 2006, and last year Toyota gave dealers permission to drop the brand without paying a fine.