Though Scion’s struggles have been evident for some time, Toyota had invested design energy and marketing power in the brand until its dying breath. The company picked the Los Angeles Auto Show in November to reveal the C-HR concept small crossover.
The FR-S sports car, iA sedan and iM 5-door hatchback will become Toyota models, in addition to the C-HR if it’s produced. The company said it will discontinue the tC sports coupe in August.
“I just think the product was never really as compelling as it could have been or should have been,” Kelley Blue Book analyst Karl Brauer said in an interview.
The 1,004 dealerships that sell Scion vehicles also sell Toyota vehicles and will continue to provide service to Scion owners.
Carter said the company would not have to pay franchise separation fees because Scion was never a legally separate franchise.
“We’re going to work with them to transition their Scion efforts over to the Toyota brand,” Carter said.
The 22 people who worked exclusively for Scion and the brand’s regional sales representatives will be offered other jobs in Toyota, the company said.
Toyota North America CEO Jim Lentz, who was the founding vice president of Scion, said in a statement: “I was there when we established Scion and our goal was to make Toyota and our dealers stronger by learning how to better attract and engage young customers. I’m very proud because that’s exactly what we have accomplished.”
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.
Article Appeared @http://www.freep.com/story/money/cars/2016/02/03/toyota-scion-brand/79747406/