#scion

Two door cars used to be everywhere. From loaded up Cutlasses and Accords. To entry level Escorts, Neons and Civics. Nearly every popular car of 20 years ago offered a hatchback or coupe variant for those seeking a touch of sport in their daily driver.

Then something happened. America gradually got older… and bigger. Four door cars went from the plain-jane three square look of the 1980’s, to designs that evoked the priciest of exotics. Advances in steel fabrication and body stamping were just the beginning of what soon became a new era where four door cars completely dominated their two door sisters.

“Why deal with the inconvenience of a two door?” said a buying public knee-deep in aging baby boomers. Why indeed when you could have everything from a Camry to an SUV if you wanted the pretense of a sporty and powerful ride. Hatchbacks soon gave way to oversized coupes, which gave way to the reality that so-called ‘sporty’ designs were now available in every segment of the car market.

Scion is quite sure of one thing: the new iQ is a much better car than the smart fortwo. What they’re much less sure of: how many of the targeted fine young North American urbanites will buy one rather than periodically use Zipcar. I’m neither young nor urban, but I’m going to do my best to pretend. Why might I buy this car—or not?

It will come as no surprise to regular TTAC readers when I say that Scion has had some sales issues lately. But instead of euthanizing the brand as some on TTAC have suggested, Toyota has decided to take a different route. Thankfully, rather than creating more me-too models based off of US-market Toyotas, the plan includes some JDM/Euro models and the much anticipated “Toyobaru “sports car. The first object of foreign desire landing stateside to start off Scion’s resurrection is the Toyota iQ micro-car. The iQ should be in showrooms across the country soon, but does Scion have the IQ to make a smarter Smart?

Having overplayed the youth marketing angle, only to find its cars being bought by folks well outside its “target demographic,” Scion seems to be making the first hesitant steps towards accepting reality. Autoobserver’s Dale Buss reports:

The economic woes of America’s twenty-somethings have forced Scion to broaden its demographic target to include the rest of the Millennial generation, up to age 35. “It’s a function of affordability and the state of economics for 18- to 24-year-olds, with high unemployment,” said Owen Peacock, national marketing communications manager for Scion. “They’re focused on things like college and debt load. At the end of the day, do you go with a small target or go after those who can actually buy a car now? So you need to adjust.”

But how is the “Zeus”-themed online marketing campaign actually supposed to expand Scion’s appeal to an older demographic?

Ben writes:

I’m planning a purchase this summer. The two cars I’m looking at most closely are the Mazda2 and the Scion xD. I noticed that the 2011 Mazda2s are spending an average of 109 days on the lot, and the 2010 xD is even worse at 239 days. Your February sales charts and March charts paint a similar picture. They’re both selling terribly, but I’m so far unable to find good deals on either, for different reasons.

TTAC Commentator wannabewannabe asks:

Sajeev and Steve,

This is one of the columns I always read on TTAC, and now it’s time for me to submit a question. I haven’t been keeping up on new (and slightly used) cars as much as I used to, so I’d love to get the advice of you guys and the b&b.

Here’s the situation. My mom just totaled her 2007 Scion tC. Don’t worry, other than a few bumps and bruises, she’s fine. But that does leave her in the position of needing a new(ish) car. Of course, I volunteered to help her come up with a list of possibilities for her to consider. The insurance company has given her an estimate of a $13k payment for the Scion, so let’s use that as a baseline. I just talked to her and got her wants and needs and possible price range. They are:

A lengthy Automotive News [sub] story on Scion concludes with Scion VP Jack Hollis restating the brand’s basic myth:

Scion was not created for Scion’s sake. Scion was created for Toyota’s sake. It is an investment in Toyota’s collective future.

Hollis’s argument is bolstered by the scenario in which a youngster is attracted to a Scion store by the brand’s youth-oriented marketing, only to leave in a Corolla. Hollis argues that this model means Scion doesn’t have to worry about its sales volume… which is a good thing, considering the brand’s steady sales decline over the past four years. Hollis explains:

We still don’t go with a set [volume] number. Scion wants to be more influential. We want to talk to more people. We’re getting the right people, so the real question is: How do we get more of them?

I don’t know about you, but creating a brand to be “influential” and to “talk to more people” sounds like some vintage, dry-aged, old-school GM branding nonsense. And given that Scion’s sales decline coincided with the rollout of less-distinctive, more Toyota-like products, Scion’s apparent comfort with its recent declines smack of Old GM-style apathy as well (Scion execs respond with the old “but we gave customers what they wanted” chestnut). But don’t worry… Scion has a plan!

See that? Looks a bit like a first-generation Scion xB, doesn’t it? It’s actually a new Kia, codenamed “Tam,” built on its new A-segment Picanto Morning platform, but featuring first-gen xB-style tall-body MPV packaging. The Picanto’s wheelbase is actually slightly smaller than the xB’s, and there’s another key difference here as well: see that rear door? Look where the handle is placed. That’s right, it’s a slider! But that’s not all…

Toyota has had a problem lately: aging clientele. While some marketing firms will try to reinvigorate an aging brand with flashy new commercials and risqué advertising campaigns, Toyota decided to create a whole new brand in 2002 targeting Generation X and Y: Scion. Since the generations at the end of the alphabet are short on cash but long on youth, value pricing is the biggest draw for the Scion brand. Therefore it should be no surprise that the average age of Scion shoppers isn’t as low as Toyota could have hoped: old people like a bargain too.

Eager to connect with twentysomethings, Scion has sponsored over 2,500 cultural events. Nevertheless, sales are far off their peak. Apparently free doom-metal concerts can only accomplish so much when the target customer can’t find a decent job. Or is the product the problem? Apparently Scion thinks so, as it’s forecasting praying that a redesign of the tC for the 2011 model year will double the model’s sales. (Which, if accomplished, would still leave them at half the 2006 peak.) So, might these prayers be answered?

Scion brand manager Jack Hollis tells the WSJ [sub] that

The sales are nowhere where they should be and they will never be this low again

And with only 29,672 units sold through 2010, he ain’t kidding either (well, except for maybe the last part). Meanwhile, with the Yen headed up, profits on Scion’s small, Japanese-built offerings aren’t in great shape either. In short, it is with good reason that Scion is the subject of the most-recent TTAC Deathwatch. Meanwhile, Scion’s bid for renewed relevance hangs on the success of two cars: the neo-Corolla Coupe tC, and the A-Segment Scion iQ three-seater. TTAC will have an early review of the tC before the end of the week, but before we get into the specifics of that vehicle, let’s ponder the wider question of Scion’s viability. Will these two cars bring back Scion’s sales to their previous levels? Let’s take a look at Scion’s historical sales for answers…