Toyota Rules Out New Scion Models in Near Term
Toyota's US sales chief says Scion dealers should not expect new models soon, as the brand's sales continue to slide and focus remains on core Toyota products.
Toyota has confirmed that its youth-focused Scion brand will not see any new models in the immediate future, according to a senior US executive. Bob Carter, senior vice president of Toyota Motor Sales USA, told Reuters that while the Toyota marque is preparing several new product launches, Scion dealers should not expect fresh models for some time.
Toyota Executive Confirms No New Scion Models Coming Soon
Impact on Dealers and Showroom Strategy
The absence of new models makes it harder for dealers to attract younger buyers, especially as competitors update their own line-ups. Dealers are permitted to use showroom space currently allocated to Scion for Toyota-branded vehicles instead, and there will be no repercussions from the company for doing so. This adjustment is intended to help dealers maintain sales momentum, given Scion’s shrinking line-up and declining interest from buyers.
- Dealers may reallocate Scion showroom space to Toyota vehicles.
- No penalties or repercussions for shifting focus away from Scion.
- Dealers can maintain sales momentum by promoting new Toyota models.
Scion Sales Continue to Slide
Scion’s US sales have continued to decline. Through August 2013, sales were down 1.6% compared to the previous year. At this rate, annual sales for 2013 are expected to reach only about 40% of the brand’s peak year in 2006. The lack of new models has contributed to this ongoing slump, as buyers increasingly look elsewhere for fresh and appealing options.
| Year | Sales Volume | % of 2006 Peak |
|---|---|---|
| 2006 | Peak year | 100% |
| 2012 | - | ~41% |
| 2013 (projected) | -1.6% from 2012 | ~40% |
Scion was launched by Toyota to attract younger, first-time buyers with distinctive styling and accessible pricing. However, as the model range aged and competitors refreshed their offerings, Scion struggled to maintain its momentum. The current line-up, without any immediate updates, has left dealers with fewer tools to entice new customers.
Strategic Value of Scion to Toyota
Despite falling sales, Toyota has not decided to wind down the Scion brand. Carter pointed out that Scion continues to play a strategic role within Toyota’s broader portfolio. Nearly 75% of Scion buyers are first-time car owners, and when these customers return to the market for a second vehicle, many choose to stay within the Toyota family, moving up to a Toyota or Lexus model. This ability to bring in new customers gives Scion value beyond its headline sales figures.
- Scion attracts a high proportion of first-time buyers (nearly 75%).
- Many Scion owners later purchase Toyota or Lexus vehicles.
- Scion’s role is to introduce new customers to the Toyota family.
However, the lack of new models is testing the patience of dealers, who must manage with an ageing product range. Some analysts have speculated that the absence of fresh products could signal the beginning of the end for Scion, but Carter denied that Toyota is planning to discontinue the brand at this time.
Dealers Shift Focus to Toyota Models
Toyota’s decision to allow dealers to reallocate showroom space is seen as a practical response to Scion’s situation. With no new Scion models to promote, dealers can focus on Toyota vehicles that are more likely to generate sales. This flexibility may help dealers weather the current lull in Scion’s product cycle and maintain overall showroom traffic.
For now, the future of Scion depends on whether Toyota chooses to invest in new models further down the line. Until then, dealers will have to rely on the existing Scion range and prioritise Toyota’s main line-up for sales volume. The brand’s long-term prospects remain uncertain, but its current status reflects Toyota’s focus on its core models and markets.
Looking Ahead for Scion
Scion’s situation highlights the challenges faced by brands targeting younger buyers in a competitive market. Without new models, sustaining interest is difficult, and both dealers and customers are increasingly turning to alternatives. Whether Toyota will eventually reinvest in Scion or shift its strategy remains to be seen. For now, the brand’s future is on hold, with its value to Toyota tied mainly to attracting first-time buyers who may later become loyal Toyota or Lexus customers.
