With its reputation for dependable, safe products, Toyota projects a conventional image that doesn’t tend to attract young drivers. Bring young customers into Toyota’s ranks: this was what the Scion brand, launched in the United States in 2003 and Canada in 2010, was supposed to do.
The Failure :
Even though Scion cars turned heads in the beginning for their bold and appealing design, sales quickly levelled off. Scion looks good on paper, but in reality, not only are its models in the same category as Toyota, they’re sold at Toyota dealerships. In the end, Toyota realized that the two brands overlapped, and that they could do just as well with only one.
This is not unlike the case of the GM Saturn, also intended to attract a younger clientele. Similarly, Scion did not succeed in carving out or maintaining a suitable territory distinct from that of its sister brand.
The Moral :
Developing a new brand in the automobile industry is a colossal task. In entry-level categories, Scion competed with industry giants, including Toyota. In bringing the best prospects for Scion under the Toyota banner, the company hoped to make good on its bets: time will tell if Scion has what it takes to rejuvenate Toyota.
Image Source : TBO.com