Toyota News Update: Scion Dealers Given Way Out
Toyota news update: Toyota have decided to relieve dealers of Scion cars. The brand was promising but has failed to reach targets, so Toyota are bailing.
Despite looking at all possible courses of action, Toyota have decided to remove their small car brand Scion from the market. When it first appeared on the market the brand had potential but as it struggled with production problems, the brand slipped and has finally ground to a halt.
Sales figures indicate that the American market is fine for small cars – as long as they’re not for the Scion. July’s figures were down 2% from the previous year and the total figures showed a 9% drop over the year July-July.
What precisely is so unappealing about the Scion is hard to say. There are thousands of small cars sold across the globe every day but somehow the Scion has struggled. Their flagship car, the iQ, has only been on the market for two years but has seen sales drop by more than half. When the figures for Toyota’s sales in the United States read in excess of 1.3 million but the iQ’s sales are just 2600 this year it is clear that the brand has not been a success.
Toyota News Update
The Scion launch went extremely well under Toyota’s sales pitch ‘youth play’, which first appeared in 2003, and Toyota’s small car sales rocketed up to 173000 in the United States in 2006. It was the parent company that failed to provide the support Scion needed though and as they battled against the recall crisis and natural disasters, the small car company dwindled as Toyota prioritised other areas of their business.
In light of all of these factors, Toyota have ruled that dealers who wish to part ways with Scion can do so without incurring a penalty. Roughly 4/5 of United States based Toyota dealers continue to offer the Scion brand which is way up on what they were expecting, but then the way the brand started out the dealers jumped at the chance to feature the cars on their forecourt.
The benefit to dealers who choose to remain faithful to the brand is quite simply that they are more likely to profit from those who are still interested in purchasing the cars. The fewer places sell the cars, the more cars those few stockists do sell. Slightly twisted logic but there nonetheless and with new features set to be released on their 2014 model it might just pay off to stick with the brand.
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