Scion executive saying network might contract image

Offspring of corporate giant Toyota, the Scion brand has always been considered an individualist, with a niche and youth-minded approach. Still, it has 1,000 dealers across America, with a very small portfolio and not that great sales volume.

So, no wonder that with a dealership network of only 200 short of Toyota itself, Scion top executives are thinking about trimming down the network, in order to become more efficient and return better profit.

In a WardsAuto report, Bill Fay, US group vice president for Toyota, is admitting to the industry publication that its dealer network “might actually go down a little bit.”
This is also because Scion is far from the good days of the mid 2000s when the product line was even smaller but the sales numbers were considerably higher than now. Back then, Scion sold in 2006 no less than 173,034 units, while through July the brands sales volume is only at a fraction – with 41,261 units.

Other low volume brands in America have far fewer dealerships, with Mini only accounting 115 and Infiniti about 200. Also, for the Japanese brand a bigger question is painstakingly arising – where do they go from here? Fay admits “big brother” Toyota is discussing a number of possibilities, including going further to the “premium” side.

via WardsAuto