Toyota Kills Youth-Oriented Scion Brand

Toyota Motor Corp. is scrapping its 13-year-old Scion sub-brand in August. Existing Scion models, including the new C-HR subcompact crossover, will merge with the Toyota brand for the 2017 model year.

All Scion warranty, financing and service elements will continue to be handled by Toyota. Scion’s 1,000 dealerships all are co-located within Toyota stores.

Joining the Scion C-HR in Toyota’s lineup will be rebadged versions of the Scion FR-S sports car, iA sedan and iM hatchback. The tC sports coupe will be discontinued in August.

Toyota introduced Scion in 2002 as a channel to reach young buyers with inexpensive but stylish small vehicles. The concept was an early hit, with annual sales peaking at 173,000 units in 2006. The average Scion buyer was 36 years old, and 70% of owners were new to Toyota, according to the company.

But demand has waned in recent years. Sales over the past two years have dropped 18% to 56,200 units, according to Autodata Corp.

Scion was noted for unconventional marketing techniques. One example is last year’s online pilot program that enabled prospective buyers to completely spec and price a new model (including all fees and financing charges), get an estimate on a trade-in, and apply and get approved for credit prior to visiting a dealership.

Toyota says it home brand has since bolstered its appeal among young consumers and no longer needs a separate youth nameplate.