Toyota Ends Scion Line

Toyota

Toyota kills its ailing Scion brand - Toyota confirmed on Wednesday that it has killed its ailing Scion brand, which was spun off as a separate lineup of vehicles in 2003 but slumped in recent years after critical flops and slumping car sales.

The brand's vehicles will be rebadged as Toyota models beginning with the 2017 model year.

“This isn’t a step backward for Scion; it’s a leap forward for Toyota," Toyota North America CEO Jim Lentz said in a statement. "Scion has allowed us to fast track ideas that would have been challenging to test through the Toyota network."

Lentz, who was the founding vice president of Scion, added: "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."

Toyota envisioned Scion as an entry point for cost-conscious, young buyers. In that respect, the strategy worked.

The average age of a Scion buyer was 36 years old, and 70% of the brand's buyer's had never purchased a Toyota before.

But critically panned design choices — such as the cramped iQ mini car — set the brand on a path toward irrelevancy for the average new-vehicle shopper. The last straw, you could say, was plunging gasoline prices, which have crushed sales of the type of small cars Scion pursued.

"It just never got traction and it has been on life support for at least five years, if not longer," said Peter De Lorenzo, a former auto marketing executive and editor of Autoextremist.com, in an interview. "But kudos to Toyota for admitting that it was superfluous and they were wasting a lot of money trying to make the brand survive."

Scion's sales fell 3% in 2015 to 56,187 units. But was down 24% from 73,507 in 2012 and down 68% from its high point of 173,034 units in 2006.

Though Scion's struggles have been evident for some time, Toyota had invested design energy and marketing power in the brand until its dying breath. The company picked the Los Angeles Auto Show in November to reveal the C-HR concept small crossover.

That vehicle will join the Toyota lineup, the automaker confirmed.

The FR-S sports car, iA sedan and iM 5-door hatchback also become Toyota models. The company said it will discontinue the tC sports coupe in August.

"I just think the product was never really as compelling as it could have been or should have been," Kelley Blue Book analyst Karl Brauer said in an interview.

It was not immediately clear how the move would affect the 1,004 dealerships that sell Scion vehicles. All are already Toyota dealers, which will continue to provide service to Scion owners.

“We believe our dealers have gained valuable insights and have received a strong return on their investment," said Bob Carter, Toyota senior vice president of automotive operations, in a statement. "During this time of transition, we will work closely with them to support this process and help communicate this change to customers.”

The 22 people who worked exclusively for Scion and the brand's regional sales representatives will be offered other jobs in Toyota, the company said.