SCION AXES POPULAR COMPACTS TO MAKE ROOM FOR NEW MODELS

SCION AXES POPULAR COMPACTS TO MAKE ROOM FOR NEW MODELS

Toyota Motor Corp. recently announced that it will discontinue the Scion xA and xB this December.  They will be replaced by two newer 2008 models in an attempt to “keep the marquee fresh.”

Mark Templin, vice president-Scion, said that “’The xA and xB will always be very special models for us and have contributed greatly to Scion’s success’”.  One of the replacements will be called the xD, a name that was trademarked in March along with the names tD and tE. Toyota will not say what the xD will look like or what type of vehicle it will be, but Don Esmond of Toyota said that it will not be an SUV.

According to Ward’s data, the Toyota NCV will be joining the Scion lineup.  The NCV is a front- and all-wheel-drive “sport wagon,” but it is unclear whether this is in fact the new xD, or a different vehicle altogether.

Despite the changes Scion is going to make, the lineup will continue with only three models.  The xA has lagged in sales behind the tC coupe, and actually competes against Toyota’s Yaris 3-door hatchback in the U.S. subcompact segment.  Jim Farley of Toyota told Ward’s that the automaker is considering bringing the Yaris 5-door model to the U.S. as a result of the successful sales of the 3-door version.

The Scion xB is the brand’s second-best seller behind the tC, with 44,997 deliveries this year.  The tC has sold more than 55,498 units year to date and according to Ward’s is scheduled to be redesigned in 2010.  When Toyota launched its Scion brand, it said that “it would strive to keep the brand’s appeal fresh to young buyers, with short attention spans, by jettisoning a top-selling model or renaming it, if necessary.”

Source:  Christie Schweinsberg, “Scion to Drop xA, xB; New Models on Way”, WardsAuto.

Relevance

   * Scion has established a loyal consumer following in the tuner market, and the new vehicles are likely those same buyers—thus providing a potential opportunity.

   * Knowing that the models will be discontinued, industry manufacturers can limit production of products for them.

The "Relevance" section in the article above contains insight written by SEMA Market Research staff. E-mail feedback to tym@sema.org.