Toyota Plans to Cut Scion Production to Keep Brand Unique

Washington DC November 10, 2006; The AIADA newsletter reported that Scion, Toyota's youth-focused brand, is on track to beat its 150,000-units-a-year sales goal by 25,000 vehicles in 2006. Still, in order to keep the brand special and fresh, Scion plans to cut production to keep sales from going above 150,000 vehicles next year, reports The Wall Street Journal.

"I agree with the strategy," said Lyly Lao who works in sales at West Covina Scion in California. "Everybody is trying to be different, so it's important for Scion to not put too many cars out there, or they will be everywhere."

George Peterson, president of marketing research firm, AutoPacific Inc., approves of Scion's decisions but questions whether dealers will support Scion's cut in vehicle production. He asserts that Scion could sell 250,000 vehicles a year if it weren't for production controls.

However, for Toyota, "Scion's importance isn't so much added volume as it is bridging the gap to younger buyers who consider the company's mainline Toyota brand vehicles too stodgy."

About 80 percent of people who buy a Scion have never had a Toyota. Yet, when Scion owners trade in their vehicle, eight of the top 10 vehicles they opt for next are either Scions or other Toyota models