The History of Scion: How Toyota Tried to Win Younger Buyers

Timeline at a glance: 1999 to 2016

Project Genesis and the idea of a separate brand

By the late 1990s, Toyota had a problem in the United States. Its cars were reliable and sold well, but the average Toyota buyer was getting older. In 1999 the company tried Project Genesis, a marketing effort for some of its smaller and sportier Toyota models. It did not attract the younger customers Toyota wanted, and it ended in 2001.

Toyota then decided that a new name was needed. The project, called Project Exodus inside the company, became Scion, a word for a descendant or heir. A Los Angeles design agency created the name, logo and first website. The approach looked a little like Toyota's earlier move upmarket with Lexus: a separate badge, a separate showroom area and a different way of selling.

The concept was simple. Scion would use cheap, proven Toyota parts, often from Japanese-market models, and add personality through design and accessories. Each car had a single "monospec" trim with most equipment included. Buyers then personalised it with roughly 150 factory accessories, from lighting kits to audio upgrades.

Launch in California and growth to 2006

The brand first appeared at the New York Auto Show in March 2002 with two concepts: the bbX, which became the xB, and the ccX, which became the tC. Sales began on 9 June 2003 at 105 Toyota dealers in California, with the xA hatchback and the xB. Scion reached the South, Southeast and East Coast in February 2004, and the whole country in June 2004, when the tC arrived.

Selling was as different as the cars. "Pure Price" meant that the posted price included the car, its accessories and finance and insurance products, with no haggling. Geo and Saturn had tried no-haggle selling in the early 1990s, but Scion combined it with a youth image. Sales rose from 10,898 cars in the half-year of 2003 to 156,485 in 2005 and a peak of 173,034 in 2006.

By our calculation, 2006 alone brought 16 % of all Scion sales, and the three years 2005–2007 brought 42 %.

Models from the xA to the iM

Every model was a Toyota product, and most were sold under other names elsewhere. The table lists the main models.

The xB became the face of the brand. Its square shape and low price made it a favourite with young drivers and customisers, and its full story is in the Scion xB guide. The tC coupé, the best seller in later years, attracted the youngest buyers of any car in the country: their average age was 29.

The FR-S of 2012 gave Scion its only real sports car. It came from the joint Toyota and Subaru project that also produced the Toyota GT86 and the Subaru BRZ, with a flat-four engine and rear-wheel drive.

The brand also sold limited "Release Series" editions, each in one colour with a numbered run. They began in 2004 with the xB RS 1.0, limited to 2,100 cars, and ended in 2016 with the FR-S RS 2.0, limited to 1,000.

Who bought a Scion: the buyer profile

On age, the plan worked. In 2007 the average Scion buyer was 39 years old, the lowest of any brand in the US, while the average Toyota buyer was 54. More than 70 % of Scion customers had never owned a Toyota before, and just over half were under 35.

Marketing aimed at the same group. The brand used guerrilla and viral campaigns rather than heavy television advertising. Scion AV funded music, art and film, Scion Radio 17 ran 17 internet radio channels, and the "want2bsquare" websites promoted the xB. In August 2008 the "United by Individuality" campaign featured more than 300 owners' customised cars.

The weakness was what came next. Analysts found that few Scion buyers moved on to more profitable Toyota or Lexus models, so the brand did not build the customer pipeline it was meant to create.

Recession, Canada and decline after 2008

The 2008–2009 recession hit the brand hard. Sales fell from 113,904 in 2008 to 57,961 in 2009, almost exactly half. The original xA and xB had been replaced by larger, heavier successors, and the new xB lost much of the original's character.

Toyota still expanded the brand. It opened in Canada in September 2010 at 45 dealers, including Toronto, Montreal and Vancouver, with the tC, xB and xD. The iQ city car and the FR-S followed. The FR-S lifted sales to 73,507 in 2012, a rise of 49 % on 2011 by our calculation, but the gain did not last. By 2015 it sold 56,167 cars, about a third of its 2006 peak.

Closure in 2016 and what became of the cars

On 3 February 2016 Toyota announced that Scion would close after the 2016 model year. The company said it no longer needed a separate brand to reach younger customers. Scion closed in August 2016, at the start of the 2017 model year.

Toyota said its dealers would keep servicing Scion cars, so owners were not left without support.

Which Scion to buy today: our verdict

Scion proved that a carmaker could lower the age of its buyers with clear prices, simple trims and a strong design identity. It also showed the limits of a brand built on a few cheap models: once those models aged, there was little left to sell.

For a used-car buyer, the choice depends on the job. The FR-S is the pick for driving enjoyment: rear-wheel drive, a low seating position and a manual gearbox in many cars. The second-generation xB suits anyone who needs space, since its 2.4-litre engine and box shape make it a roomy, simple runabout. The first xB and the xA are now old, light and basic, and they suit collectors or very low budgets. The iQ is only for city use.

Avoid heavily modified cars, which were common among young owners, and check that recall work was done at a Toyota dealer. If you are weighing a Scion-era car against a newer small car, the 1cars car finder and the comparison tool help match the options. The parent company's story is told in the history of Toyota.