Toyota is mulling a new direction for the Scion brand, which may see it moving into the new entry-level luxury segment.
When the Scion brand launched in 2003, Toyota’s goal for the brand was to bring new young entry-level buyers into Toyota showrooms. Since then, Scion has lost that early momentum, prompting some upcoming changes, which may see Scion targeting new entry-level luxury buyers.
Jim Lentz, CEO of Toyota’s North America Region told Automotive News, “Everybody is looking at what direction Scion should go. We have to take a real hard look at what the future of the industry looks like strategically, and where we want Scion to play.”
The entry-level luxury segment is expected to become larger with the arrival models like the Mercedes-Benz CLA and 2015 Audi A3 sedan. Scion may give Toyota a way to compete in the segment, since Lexus does not want to drop below the $30,000 price point. “There’s a cost to provide that outstanding Lexus customer service,” Lentz said. “We don’t want to lose that, and we don’t want to cheapen our cars.”
Toyota hasn’t made a final decision, but has admitted that a change for the Scion brand is needed. “Today it’s hard to find much value below $18,000 to $20,000,” Lentz said. “There’s going to be a big need in the $25,000 range for a fun-to-drive, nice-looking, value-oriented product.”
