Toyota has killed off its Scion brand
Scion, which was launched in North America in 2003 to appeal to young car buyers, will be absorbed into the company's main Toyota brand starting this August.
"This isn't a step backward for Scion - it's a leap forward for Toyota," Toyota Motor North America CEO Jim Lentz said in a statement.
"Scion has allowed us to fast-track ideas that would have been challenging to test through the Toyota network."
Toyota launched the Scion more than a decade ago with the great hope that the brand would attract a more youthful and trendy customer than that of its mainstream brand.
Though the brand started off strong, posting stellar sales figures from 2004 to 2008, the recession and lack of fresh product led to a sharp drop in sales.
While Scion had some critical and sales successes such as the TC sports coupe and the XB crossover, it never lived up to Toyota's expectations in terms of sales and brand reach.
"Over the last dozen years, Scion products have not resonated with consumers, and the lineup grew stale despite recent attempts to revitalize it," Kelley Blue Book senior analyst Rebecca Lindland said in an email.
"It's the right move for Toyota from a cost standpoint, and allows them to reallocate and focus resources to profitable lines."
With an annual sales target of 100,000 cars, Scion delivered fewer than 60,000 last year.
"I was there when we established Scion, and our goal was to make Toyota stronger by learning how to better attract and engage young customers," Lentz said.
"I'm very proud because that's exactly what we have accomplished."
Beginning with the 2017 model year, Scion's lineup of vehicles will be sold under the Toyota brand with the exception of the TC coupe which will be discontinued at the end of the year.
According to the Japanese auto giant, the service and repair process for Scion customers will not be affected. Scion owners will continue to receive those services from Toyota dealerships and service centers.
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