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UPDATE DAY 2 3 January 16, 22 am ET - adds the update of the advertising agency.
LOS ANGELES - Toyota pulls the plug on Scion, funky upstart brand, it launched in 2002 to appeal to young buyers picky, it was hard to connect with himself.
The reason, Toyota is no more struggling to connect with buyers.
The end will come quickly - and a few months after the launch of two vehicles that were considered essential to reviving the Scion brand will be abandoned in August, the automaker said today, and its model range will be folded into the Toyota beginning with the 2017 model.
Scion, which sold more than one million small cars more than 13 years, was an early hit with younger buyers who perceive Toyota offers as reliable cars but utilities for their parents generation Since its creation, the brand served as a laboratory for vehicle shifted, marketing and retail experiences.
But in the wake of the global recession and the crisis of the unintended acceleration of Toyota, investment dried up in the brand and its range of products thinned Moreover, Toyota said, young people are different today and are less likely try to stand out from their parents as a result the mother brand now commands more respect among young consumers today than Scion.
Buyers of young people are in a different position there are quite as they were 13 years old, Bob Carter, senior vice president of Toyota Motor Sales operations told Automotive News That's really what's driving this decision.
The shutter decision, he can throw it as a historical failure, but Toyota will probably walk away justified in its efforts to strengthen its own image among younger consumers.
I think when you have to unpack a brand and dealers say it's over, I do not know how at a certain level, you can not say that the failure of his said Karl Brauer, senior analyst for Kelley Blue Book but I think to be more accurate to call it a learning experience or experience they have learned at the end but were unsuccessful.
Toyota hopes that the transition will be as seamless as it will be.
The current Scion iA, cars and iM FR-S will be badged as Toyota for model year 2017 when they arrive at dealerships in August tC coupe was already in line to be discontinued after the 2016 model year.
The concept Scion CH-R that debuted at the Los Angeles 2015 Auto Show will be sold as Toyota when it hits the US market in 2017. This model as Toyota was already planned for the rest of the world, and production version of the subcompact crossover will make its world debut at the Geneva motor Show in March.
All warranties, financing and service elements will continue to be managed by Toyota, the automaker said 1004 Scion dealers - who are all in existing stores Toyota - will continue to sell the vehicles as they have done in the past Toyota said today would contact the dealers informing them of his decision.
There's absolutely no change to the consumer everything remains the same, Carter said, we're just changing the brand and logos.
The movement also doesn t change the Scion relationship with its manufacturing partners, Mazda and Subaru and any Toyota product will be cut, the automaker said.
Last year, Toyota Scion and used her younger target market to test an online transaction program called Process Pure Plus Scion configuration allow users to go online, spec Scion vehicle; Search local dealers for a match; get pricing information, including taxes and fees; Calculate monthly payments; get a quote on an exchange, and apply for and get approved for credit with a certificate to take to the dealership.
Toyota said it plans to launch from the program for Toyota dealers as well.
The Scion brand emerged in 2002, with a picture significantly compared to the against-culture, more staid Toyota The first cars - the form xB box and compact xA - came a year later in New York and California with the realized marketing at the beginning of night clubs and other youth meeting places rather than traditional jacks such as television, the national brand went in 2004 and added the coupe tC sales peaked in 2006 at 173.034 units.
But the combination of the great recession and the crisis of unintended acceleration of Toyota attention have guided Toyota - and money - elsewhere; investment in product Scion suffered by 2010, a period of economic uncertainty pronounced among target customers Scion, sales had hit bottom in about two months 45.678 Camry sales this year.
The addition of specialty cars - coupe co-developed with Subaru FR-S and iQ microcar bites - Scion has given new life two years later.
But dealers still growling, Toyota Motor Corp. President Akio Toyoda urged them to stick to the brand Catches They need to wait a few years for the new product because Toyota resources were limited and that the company needed to give priority, Toyoda said in November 1st 2013 interview with Automotive News.
This new product has finally arrived in 2015 with the launch of the iA subcompact sedan built by Mazda and iM five-door hatchback with a television advertising campaign weirdo who became a viral success of sales online last year reached 56,167 - but he stayed less than a third of their peak.
Shortly after the new vehicles hit the market last year, Toyota in September appointed a new head of the Scion brand, Andrew Gilleland, who helped work with the brand's dealers on the ground in 2003 and went Lexus He replaced Doug Murtha, who took a business strategy position at Toyota North America.
former leaders of the brand included Mark Templin, now global head of Lexus, and Jim Farley, who helped launch the Scion brand and then left Toyota to Ford, where he now runs the European operations.
Folding Scion Toyota will take the results of Scion Featured per month in potentially negative focus delay after month when the sales figures come thanks to new models, Scion sales rose 38 percent in January.
But it wasn t the slow volume Scion condemned the brand, Toyota said the contrary, it was the question of whether there was still a reason to exist While Generation X wouldn t be caught dead in the same brand as their parents and grandparents praised in 2003, millennials have a much more favorable view of Toyota.
This left many buyers with the idea that less is Scion brand Toyota, Carter conceded After all, almost all Scion models sold for less than 22,000 and with limited options and packages finish.
I think it really speaks to the difficulty of selling what I and a number of people saw as a lesser Toyota, Brauer said that's what it has always been for me a lesser Toyota.
Toyota - having regained his world domination and started a major reorganization of its North American operations - decided to move quickly to capture what he saw as an opportunity.
Undoubtedly, the volume awareness, Carter said, and there is a much greater awareness of Toyota Scion there today and with this level of consciousness, Toyota is an ambitious brand, now is the right time to make this move.
Toyota dealers will communicate throughout the day of his decision, Carter said the automaker has already said both the Scion and advice from Toyota, the decision of which two have supported Toyota, Carter said.
They understand what's happening on their showrooms, Carter said he just validated.
Meanwhile, Toyota will not immediately change its relationship with the agency Droga5, who started working for Scion beginning of last year, according to Advertising Age a subsidiary of Automotive News.
And ads for Scion continues to function, at least for now, according to a spokesman for Scion We have a lot of Scions for sale, so we will continue our marketing for the moment, we will make decisions about to other marketing plans and partners at a later date, she said.
The campaign Droga5 called Weird, right launched in September and included original ads with the likes of James Franco, Jaleel White Family Matters Urkel and a vampire hipster Droga5 also worked on the launch campaign of the vehicle Toyota fuel cell Mirai.
E J Schultz Advertising Age contributed to this report.
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