Toyota has confirmed that they are ending the Scion brand, a separate lineup of vehicles as a spin off in 2003. The end has come dude to its most recent slump in sals and critical flops. The brand will be rebadged as Toyota models in the 2017 model year.
CEO Jim Lentz said, “This isn’t a step backward for Scion; it’s a leap forward for Toyota. Scion has allowed us to fast track ideas that would have been challenging to test through the Toyota network. I was there when we established Scion and our goal was to make Toyota and our dealers stronger by learning how to better attract and engage young customers. I’m very proud because that’s exactly what we have accomplished”.
Scion was an entry point for cost-conscious buyers, therefore their strategy worked because they average Scion buyer was 36 and about 70% of them had never purchased a Toyota before. but sales plummeted and their brand became irrelevant to new car shoppers.
Peter De Lorenzo, a former auto marketing executive stated that, ”It just never got traction and it has been on life support for at least five years, if not longer, but kudos to Toyota for admitting that it was superfluous and they were wasting a lot of money trying to make the brand survive”.
Kelly Blue Book analyst, karl Brauer also said of the brand, “I just think the product was never really as compelling as it could have been or should have been”.
They are preparing to have the brands regional sales representatives to be moved to other jobs in the Toyota company.
