All-New Scion Vehicles Go on Sale Today in 105 California Dealerships

TORRANCE, Calif., June 9 -- Scion's first two production models, xA and xB, go on sale today in California at 105 dealerships. Scion, the new car marque from Toyota Motor Sales (TMS), U.S.A., Inc., was created to suit the demands of an emerging culture of new car buyers known as Gen Y.

Manufacturer's Suggested Retail Prices (MSRP) for both vehicles acknowledge the target buyer's budget while giving them an unprecedented level of value and quality products.

"Scion's target buyer is information rich, time poor and highly technology savvy," said Jim Farley, vice president of Scion. "Scion caters to this influential generation with unique products, a distinctive dealership environment and a revolutionized sales process, all complemented by an astonishing sticker price."

Simplicity is important to Scion's target buyers, and the extensive standard specifications list was derived with this key objective in mind. Both the xA and xB are mono-spec vehicles and a customer must only make a few key choices when purchasing a Scion: model, transmission, color and accessories.

Both the muscular five-door xA and the sharp-edged xB are powered by a 1.5-liter, four-cylinder engine with variable valve timing with intelligence, or VVT-i, that produces 108 horsepower at 6,000 RPM and 105 lb-ft. of torque at 4,200 RPM. The xA offers exceptional fuel economy with EPA estimates of 32 miles-per-gallon in the city and 38 on the highway for both manual and automatic transmissions. The xB is just as fuel conservative with EPA mileage estimates of 31 miles-per-gallon in the city and 35 on the highway when equipped with the five-speed manual transmission.

The xA and xB are offered at an attractive price position with standard equipment that includes:

  *  Air conditioning,
  *  Six-speaker premium Pioneer AM/FM/CD sound system that is satellite
     ready and MP3 compatible,
  *  Power windows with one-touch driver's side auto down,
  *  Power door-locks and outside mirrors,
  *  A choice of one of three wheel cover designs

Standard safety equipment for both vehicles includes Anti-lock Brakes with Electronic Brake-force Distribution, driver and front passenger airbags, head restraints, a first-aid kit and three-point seatbelts in all five seating positions. xB also features Vehicle Stability Control with Traction Control and Brake Assist as standard equipment, while xA offers side and side curtain airbags as an option.

In addition to the host of standard equipment, consumers can choose from a wide array of approximately 40 accessories with which to customize their vehicle. These range from appearance enhancements, such as alloy wheels, carbon fiber appliques, sport pedals, shift knobs and interior lighting kits to underhood items, such as cold air intake or a strut tower brace. These Scion accessories are covered under the standard Scion limited warranty of three years or 36,000 miles, whichever comes first.

Also, Toyota Racing Development (TRD) has created a line-up of Scion performance parts that includes 18- or 19-inch wheels and tires, a lowering kit and sport exhaust. For xB, TRD also offers a performance clutch and quick shift kit.

Scion's target buyers made it clear that they want a dealer involved with the sales transaction and purchase experience, resulting in enhancements to the consumer Web site, scion.com, and to the entire shopping and purchasing process.

Consumers can visit the vehicle configuration section of the scion.com Web site to build and accessorize their Scion. This information can then be saved, printed out or emailed to a Scion dealer of their choice.

In California, about 65 percent of Toyota Division dealers have installed the Scion showroom within their current dealership. The rest either expanded their showroom or built a separate facility. The Scion dealership environment caters to buyers who want resources to answer their questions with freedom to explore at their own pace. Together, scion.com and the dealership showroom let customers explore at their leisure.

Scion "Pure Price" solution is another way Scion will meet the buyers' desire for consistency and transparency. It means that the dealership's advertised price equals the actual transaction price. This principle should apply to accessories, finance and insurance.

"Scion is more than just product," continued Farley. "We believe that by reflecting the buyers' expectations for consistency between scion.com and the dealership, and ensuring transparency and time efficiency, we will make an emotional connection at the dealership. This connection translates into a lifetime advocacy for our retailers and for us as a manufacturer."

Since personalization and emotional elements are key in the Scion purchase and ownership experience, this new brand's advertising campaign explores all avenues of creative expression and will properly represent the tag line of "what moves you."

This phrase has both rational and emotional elements, posing a provocative question to consumers. Thought-provoking messages will be consistent throughout print, wall projections, postings, billboards and magazine outserts. Scion has also produced four television spots, two of which are used for cinema. These commercials, which can be seen on late-night television and select cable stations, integrate the vehicles, music and artistic expression without voiceovers, so that viewers do not just see an ad for a car. Both can currently be seen in California only and then nationwide towards the end of this year.

Finally, Toyota Financial Services offers a finance program called Scion Solutions, specifically for Scion target customers. Many finance programs within Scion Solutions provide special rates and terms on retail purchases and leases including a college graduate retail and lease program, an iFinance program that caters to customers with limited credit who do not have co-signers and a Gen-One program for customers with no established credit and who do not have co-signers. Rates for Scion Solutions will model Scion dealers' "pure price" philosophy -- if a customer knows their credit score, they will be able to obtain their "hassle free" finance rate online.

This "pure price" philosophy, the unique products and the new dealership experience are all supported by base MSRPs of $12,480 for xA and $13,680 for xB. The xA and xB, equipped with automatic transmissions, are $13,280 and $14,480, respectively. Also included in the MSRP are three complimentary oil changes.

Currently, out of 133 Toyota dealers in California, 105 or 80 percent have signed on to represent Scion. In February 2004, the market will expand to cover the south, southeast and east coast. A few short months later, Scion will simultaneously complete the national rollout and launch the third Scion vehicle, which will be stylish, sleek and sporty. This staggered rollout allows sufficient time for ramp-up of production and further refinement of Scion's new distribution and sales processes.

"Scion is not Toyota's sole youth strategy. However, it is a vital and important part of it," said Farley. "Scion is a laboratory for change and innovation that will continue to explore new ways to stay relevant and spark the interest of this new generation for many years to come. And finally, Scion will be imitated. Our competitors will quickly realize that the real risk is to do nothing."