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Toyota will drop Scion after years of slumping sales

Brand designed for young buyers

DETROIT — Toyota is killing its Scion brand after years of slumping sales.

Beginning in August, 2017 model-year Scion vehicles will be rebadged as Toyotas. The FR-S sports car, iA sedan and iM 5-door hatchback, as well as the C-HR, which recently debuted at the L.A. Auto Show, will be a part of the Toyota lineup. The tC will have a final release series edition and end production in August.

Scion was formed in 2003 to attract younger buyers. It was known for its funky designs, like the boxy xB, and was the brand Toyota used when it wanted to experiment with marketing or no-haggle pricing.

But there were problems. The Millennials that the Scion was aiming for held back on big acquisitions during the recession, and when they did buy, they were just as happy to buy Toyotas. Scion’s small, oddball lineup never connected with buyers and they were a bit more expensive. Scion’s best-seller, the tC coupe, starts at $21,330, or $2,600 more than a Honda Civic. At the brand’s height, in 2006, sales of all Scions combined reached just over 173,000. Sales stood at 56,167 in 2015.

Toyota says it achieved what it had hoped with the Scion, including attracting younger buyers. Half of the 1 million Scions sold were bought by people under 35, the company said.

The decision will have minimal impact on dealers and owners. Scion, which is only sold in the U.S., Canada and Puerto Rico, has no standalone dealerships. The brand is sold through 1,004 Toyota dealerships, which will continue service the cars.

Analyst Karl Brauer says Scion was a victim of Toyota’s success. The Camry has been the best-selling car in the U.S. for 14 years, and Toyota’s lineup appeals to Millennials and Baby Boomers alike.

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