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Toyota's perky youth brand is adding dealers but losing sales as 2nd-generation models struggle
MARK RECHTIN, AUTOMOTIVE NEWS
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MARK RECHTIN, AUTOMOTIVE NEWS
Toyota's cool, quirky Scion youth brand may still be hip but is no longer hot.
Sales, year-on-year, have dropped for 16 straight months. Since August, monthly sales have declined from each previous month, even though dealers have had two redesigned models in their showrooms during that period.
The first-generation Scions were hits right out of the box in 2003 and 2004. But generation two has struggled. All of which begs the question: Is this a brand built to last?
The changeover of two of Scion's three models--the boxy xB and the xD hatchback--dragged on for months and helped depress sales 24.8 percent in 2007 to 130,181 units. But even with new vehicles, Scion can't seem to pull out of its slump.
"We seem to be having more sales peaks and valleys than previously," said Farlon Smith, general manager of Beechmont Toyota-Scion in Cincinnati.
In the past, Scion routinely notched 15,000 to 20,000 sales per month. But January sales were 7,782 units. In January 2006, Scion sold 10,701 vehicles with about 60 fewer dealers than it has now. The average sales per outlet during that period dropped from 11.9 to 8.1.
Scion had 856 dealers as of Jan 1, 2005. But as sales soared in 2005 and 2006, more dealers piled on, even if they weren't in hip, urban neighborhoods.
Currently, 963 of 1,224 Toyota dealers carry the brand. As sales per dealer decline faster than overall volume, one Toyota insider questions whether dealers will give Scion the same share of mind as when vehicles were flying out the door.
Toyota executives insist the soft market is hurting all players and that Scion's grass-roots marketing strategy requires time for the new vehicles to gain sales momentum.
More at Autoweek
Sales, year-on-year, have dropped for 16 straight months. Since August, monthly sales have declined from each previous month, even though dealers have had two redesigned models in their showrooms during that period.
The first-generation Scions were hits right out of the box in 2003 and 2004. But generation two has struggled. All of which begs the question: Is this a brand built to last?
The changeover of two of Scion's three models--the boxy xB and the xD hatchback--dragged on for months and helped depress sales 24.8 percent in 2007 to 130,181 units. But even with new vehicles, Scion can't seem to pull out of its slump.
"We seem to be having more sales peaks and valleys than previously," said Farlon Smith, general manager of Beechmont Toyota-Scion in Cincinnati.
In the past, Scion routinely notched 15,000 to 20,000 sales per month. But January sales were 7,782 units. In January 2006, Scion sold 10,701 vehicles with about 60 fewer dealers than it has now. The average sales per outlet during that period dropped from 11.9 to 8.1.
Scion had 856 dealers as of Jan 1, 2005. But as sales soared in 2005 and 2006, more dealers piled on, even if they weren't in hip, urban neighborhoods.
Currently, 963 of 1,224 Toyota dealers carry the brand. As sales per dealer decline faster than overall volume, one Toyota insider questions whether dealers will give Scion the same share of mind as when vehicles were flying out the door.
Toyota executives insist the soft market is hurting all players and that Scion's grass-roots marketing strategy requires time for the new vehicles to gain sales momentum.
More at Autoweek
