Filed under: Car Buying, Economy, Hatchbacks, Scion
Scion sales have hit the wall, proving bigger is not better
Click above for a high-res gallery of the Scion xB from our own review
Apparently, bigger is not necessarily better for Toyota's youth division Scion. The two original Scion models that launched with the brand were replaced by new models last year – the xD and xB – that are larger, heavier and less efficient. The buyers who made Scion a success in its first few years of existence have not been impressed, as sales have taken a dump over the last year and a half. A long gap between the end of production of the previous models and availability of new models certainly didn't help, but the new models have gotten decidedly mixed reviews including our own drive of the new xB. Even with the new models having been available now for six months or more, sales compared to the previous year have dropped for 16 months in a row. More Toyota dealers are selling Scions now, but sales per dealer have dropped from 11.9 in January 2006 to 8.1 in 2007. The Scions now have a bunch of new competitors in the subcompact class that they didn't have in 2003 when the brand launched, including the Honda Fit and Nissan Versa. Worse news still for Toyota is that more new competition is coming, like the Ford Fiesta transplant from Europe. Perhaps Scion's initial success was less a factor of offering attractive products than the fact it was the only game in town for small, efficient and hip econocars.
[Source: AutoWeek]
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Reader Comments (Page 1 of 3)
Robert O 7:05PM (3/03/2008)
They took a cool concept: a no-frills, funky, simple, convenient, useful, efficient, reasonably-priced vehicle (the XB) and made it an entirely different vehicle. There's no mystery here, Toyota just screwed up a good product, proving that U.S. manufacturers aren't the only ones capable of ruining a good thing.
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Justin 7:07PM (3/03/2008)
I have nothing to add. This is spot on.
Chris K 7:12PM (3/03/2008)
pretty much true. If only they sticked to the original concept.
Talisman 7:15PM (3/03/2008)
I completely agree with Robert O. They killed all of the cars charm.
James 7:29PM (3/03/2008)
Although you can say the 1st gen xB wasn't all that efficient - 30mpg in mixed conditions is hardly much to write home about
Seminole 8:56PM (3/03/2008)
I like the xB's looks (Go ahead and flame me, something about it makes me like it), but like a lot of Toyota's I've noticed a big bump in price. C'mon, $17,900 and you get steel wheels? A four speed auto? Add the options on and your looking at $20 grand or more. Another example is the new Matrix, the XRS starts at $21,500ish, while a Pontiac Vibe GT loaded with all the same stuff just only breaks $20,000. Add a sunroof and upgraded stereo to the Matrix and it comes to $24,000ish. FOR A MATRIX! Same thing with a new Corolla. I don't know what is going on at Toyota but they need to be competitive with their prices, when $24k gets me a Civic Si with Navi or a Corolla XRS with a sunroof, I'm going with Civic every time...
slim 9:01PM (3/03/2008)
the current xB looks like a first gen that sat on the couch and ate to many chips. disgusting. what a crime.
psarhjinian 9:31PM (3/03/2008)
The mistake Toyota made is the same one that a lot of manufacturers make when they go and chase the mass-market. Mazda made it, and has spent the last eight years unmaking that mistake; Mitsubishi and Saab still haven't quite figured it out. Porsche and BMW look ripe to screw up the same way.
The error? Listening to customers.
It's actually sort of perverse: Toyota probably did the market research and determined that people were turning down the first-generation Scions because they were too small, to underpowered, too funky. So they listened, made changes and lo, and behold, they not only didn't get new customers, they alienated their existing ones.
Any Saab fan who remembers the introduction of the (sedan-only) 2003 9-3 knows exactly what I mean.
If you wanted a CRV or RAV/4, you'd buy a CRV or RAV/4; you wouldn't even bother with Scion. If you wanted a Scion xB, and all they had was a RAV/4 in new duds, you'd probably walk over to Honda and buy an Element SC, get a used 1G xB, or cross your fingers and wait for the Nissan Cube.
Niche brands cannot go mass-market without abandoning their core buyers. Honda is probably the only brand that survived the transition (though Acura is limping a little) and they did it by making some unfailing excellent products. I'm suprised no one learned from Mazda's mid-90s implosion: remember the softened 626, the death of the 929 in favour of the "meh" Millenia and the loss of the RX-7? Mazda chased Toyota and lost (Honda didn't, but that's because the Accord never sucked like the 626 did). Now they've retreated, carved out a (very profitable) niche and hopefully will learn to value steady revenue rather than quarter-over-quarter growth.
Toyota already had Toyota as it's mass-market brand. Why they felt they needed to pull Scion upmarket is a mystery--it's the kind of mistake GM would have made, has made, and still does make today--and typically Toyota doesn't take hits from the GM crack pipe. Scion was supposed to bag those customers who would never have set foot in a Corolla; those customers who might normally be lost to Honda, Mazda or VW.
Why they felt they needed to chase customers they already had with Toyota is just dumb.
Luis 7:14PM (3/03/2008)
Uglier isn't better either.
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HAWC1506 7:17PM (3/03/2008)
Give me a Fiesta any day, I don't care what that Ford ends up being named, I'd rather drive a car that has a name that wouldn't change into an emoticon whenever I type it in instant messaging.
It's ten times better looking, with ten times better interior.
bobjava 7:16PM (3/03/2008)
Agree with Robert O on the xB.
The xD has too many design cues from other Toyotas (including the atrocious C pillar and, even worse, has LESS interior room than the xA. The xA was already small.
The tC is nice, until you look at the Civic coupe and realize the Civic outclasses it in every major category: price (albeit with fewer standard items), 0-60 performance, gas mileage, interior space, and, according to Consumer Reports, reliability.
The drop in Scion sales is massive. Even with the production changeover to new models, it shouldn't have been this profound, had they offered enticing new vehicles.
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Allan 7:36PM (3/03/2008)
While I agree with you on the Civic getting better mileage and reliability reports and all... how can you make any claim of it outclassing something in price and then say "oh, but not with as many standard things..."
Ok... so then the price is not the same and nothing is outclassing anything yet. Compare apples to apples and see where the price is then. Not that price completely which is better or not but at least make your first and primary comparison a fair one.
Note: I own a tC and would still take it over a Civic any day. "Outclassed" by it or not.
bobjava 7:43PM (3/03/2008)
Fair enough. I should have said "starting price." Some people don't want everything. For a cheap non-luxury car, they should probably have that option.
rav3 7:48PM (3/03/2008)
The squishy-mushy shifter and mediocre handling of the tC wouldn't lead you to a better performing and more efficient car?
I'd rather take public transpo than drive a Honda, but with MPGs, build quality, and resale value the Civic is a much better buy than the tC. As an econocar, the tC isn't a very intriguing package, as a sporty wannabe econocar, its even worse.
Shove a Prius engine in a tC, cut down on the weight and fix the tC's performance issues (handling, shifter/clutch, etc.) and it would be a great little machine.
Looks like Scion is in an interesting situation. They just refreshed most of their line up and the results leave a bit to be desired. Could lead to another refreshing in the not too distant future. Hopefully with better results. I would hope they could work on efficiency with the Scion brand, it couldn't hurt...
Mike S 7:19PM (3/03/2008)
I agree. I have a 2006 Xb and love the 29-33mpg I get. I hate the newer bigger version. Scion should have imported the new Bb instead. I could see an upgrade to a 1.8 liter 4 though.
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Rick 7:20PM (3/03/2008)
Not only are they much bigger, they are much uglier as well.
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Rick 7:20PM (3/03/2008)
Wanted to add that this makes me happy. Toyota was on a bigger is better in the US trend and I want them to see that won't work. That, and ugly cars won't sell.
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Philip 7:22PM (3/03/2008)
The people have spoken.
Ugly Front, Nice trunk size but bad MPG...
Xb should have stayed small and cute, I havent even test drove this model, it just doesnt appeal.
Watch Nissans cube sell.
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User 12:29AM (3/04/2008)
The Nissan Cube is everything the new xB should have been. What a bummer for Toyota.
User 12:29AM (3/04/2008)
The Nissan Cube is everything the new xB should have been. What a bummer for Toyota.