2004 Scion Review

Specifications

Toyota Hopes to Make It Big with Small Brand

If you live in California the xB is no longer an anomaly. No, the tiny box that has become the trademark shape of Toyotas new Scion youth-oriented brand is just about everywhere.

First unveiled as the Toyota concept ccX at the 2002 North American International Auto Show in Detroit, it showed up a few months later at the New York Auto Show as the genesis of an entirely new brand, the Japanese automakers third for the United States.

Since then, Scion began selling its first two models, the xA sedan and xB van/sport-utility-like vehicle, in 105 California dealerships on June 9, 2003, and theyve been doing very well, said Jim Farley, Scion vice president.

I caught up to Farley at the Automotive Hall of Fame in Dearborn, Mich., while he was briefing journalists on Scion and revealing a third model, a sports coupe dubbed the tC to be released next year.

“Scions target buyer is information rich, time poor and highly technology savvy,” Farley said. “Scion will cater to this influential generation with unique products, a distinctive dealership environment and a revolutionized sales process, all complemented by an astonishing sticker price (ranging from $12,480 for the base xA to $14,480 for the xB with automatic transmission).”

Basically, the reason behind Scion is that Toyota has been concerned that the children of Toyotas Baby Boomer customers, who are just coming of age to purchase their first new cars, will regard their parents Japanese automaker as stodgy and will be seeking other products. Korean competitor Hyundai, along with Kia, has been successful targeting the entry level of the American market with a similar strategy.

The Korean automakers progress resembles the way Toyota, Honda and Nissan became successful in the U.S., but they have been growing at a more rapid clip than the Japanese Big Three initially did.

The upcoming generation, currently called “Gen Y” or “millennials” by some demographers, has received intense focus by all the automakers because it is the largest wave of potential new car buyers since the boomers after World War II. The general consensus by many demographers is that Gen Y has many diverse groups–they cant be easily pigeonholed like the boomers or Gen Xers–and its members have very little brand loyalty.

By 2010, Gen Y will account for approximately one-quarter of all vehicle sales, Farley said. Ten years later, they will make up 40 percent of the car sales–roughly 6.5 million units in a 16-million vehicle market.

Gen Yers like to discover brands at their own pace and demand “authenticity,” stressing that things need to be “real,” Farley said. They treasure relationships with family and friends.

Scion is aimed at the Gen Y segment that would respect Toyotas quality, but eschew its normal entry-level cars, like the Corolla, he said. Toyota, meanwhile, will continue reaching for mainstream youth.

“Were not trying to hide that Scion is made by Toyota,” Farley noted. Rather, it is a unique set of vehicles, based on the companys new basic car platform developed in 1999 that includes the Toyota Yaris 3-door model that is sold in Europe and soon in Mexico and Canada (as the Echo Hatchback), the Toyota Echo 4-door sedan in the U.S., and four models in Japan.

Scion, however, has a powertrain that has been made for American drivers and roads, with an exterior that expresses young American fashion and earthy, dark and cool colors and a dark gray interior that expresses a “fashionable, sophisticated, sporty” with “upscale” touches, Farley said.

The xB is slightly longer than the slightly less expensive xA hatchback and looks very much like a low-slung sport utility vehicle. It has four large doors on the side and a hatch at back, plus loads of interior cargo room. Like the sedan, the buyer can chose between three wheel-covers. Whats more, all the seats on the boxy xB fold flat, providing plenty of room to relax.

But, the appealing feature of the vehicle is the wide variety of aftermarket equipment that can be purchased at the dealership, making it easy to personalize with factory-approved products made by various SEMA (Specialty Equipment Manufacturers Association) supplier companies, Farley said. When designing the Scion, Toyota specifically sought out the SEMA companies in North America.

Scions target market is the 22-year-old urban American male (multi-racial) with a higher than average income. Despite the target market, due to marketing quirks, the actual buyers for the Scion are, on average, in their mid-30s.

“When you target 20 year olds, the average buyer is in his 30s. If you targeted someone in their 30s, then the average buyer is in their 40s,” noted Farley.

Still, due to the xBs functionality, efficiency, and relatively low price, it has also become popular with pensioners.

Early attempts to market the Scion with traditional methods didnt seem to be working, so Toyota tried a different tactic in California. The cars are taken to certain areas in urban settings that Toyota has already scooped out as places where young people congregate. The xA and xB are brought in, along with a car or two from the competition–a Ford Focus or a Honda Civic sporting signs that say: “boring.” Then, the young people are invited to take the cars for a spin.

And, Scion has had urban (graffiti) artists make over some of the cars–actually the artists are painted on a special wrap placed on the vehicles. After the artist is done, the wrap is removed so the painting can be preserved for future displays.

Scion is using the Internet to improve the sales experience, counting on the fact that its buyers use the web to research cars in advance and even pick out optional equipment (configuring it) before stepping into the showroom. This strategy, however, is not necessarily unique. Ford, GM and others have tried using the Internet to varying degrees of success or failure. Scion has created a chat room on its web site (Scion.com), where registered members can email messages live to Toyota engineers and designers, Farley said. The only drawback is that most auto people arent living a 24/7 lifestyle where theyre online at any and all times.

Toyota has also launched a Scion lifestyle periodical thats been aptly called Scion Magazine. The summer/fall 2003 issue features short interviews with musicians, such as with Adam Lee Miller and Nicola Kuperus of Detroit who ironically drive a 1991 Ford Tempo (about as boring as personal transportation gets); a story on the underground urban artists who were involved in the Scion artist project; an interview with L.J. Garcia, 29, of Ichibahn Motorsports that does import “tuning;” plus articles giving car buying advice and a sales brochure featuring the aftermarket equipment available for the xA and xB.

Again, such specialty periodicals arent anything new in automotive marketing. GM, for example, has a specialized magazine for Corvette buyers; Ford has something for the owners of the Mustang or for its Specialty Vehicle Team products, while most top-tier producers print their own high-end lifestyle magazines. Such a magazine is new, however, for the lower end of the market.

Now, the Scion dealership experience is different than at a Toyota store, Farley said. Scion has created a modular display that can be set up in the showroom–some California dealers have placed it in their used car department–that will show the different optional equipment and colors that can turn each vehicle into a unique creation.

Dealers are one of the most critical lines of contact between an automaker and the car buyer, so Toyota paid particular care to how Scion customers will be treated with specialized training for the sales people, Farley said.

Regarding the vehicles in question, Scion provided several of its xA and xB models to drive around the streets of Dearborn. Ill make comments on the xA in a future review, as my task at hand is to report on the xB. Its styling, or lack thereof, depending of course on your point of view, is its most obvious departure from the automotive status quo. The xB has a boxy-stance, resembling, if anything, a cut down sport utility vehicle. It reminds me, if anything, of a Fisher Price toy vehicle.

But, such cubic shapes are probably striking a favorable cord with the youth and they pick up a trend I have seen from young designers coming out of the College of Creative Studies in Detroit and other car artwork of those people a decade and a half younger than me. The Honda Element, after all, is borne of this school of thought–just like GM attempted but ultimately failed with is Pontiac Aztek. So, perhaps the Scion is being released just in time to take advantage of a new youth-inspired styling trend.

Or, maybe we could take the word of 21-year-old David Byron of New Jersey, who is a student at the College of Creative Studies in Detroit. Byron worked last summer as an intern at General Motors California design studio and interacted with some of the young men and women who are attracted to the Scion vehicles (which Byron described as “sweet”). “Yeah, they know it [the xB] is a box, but with all the accessories you can put on it, you can say: Im the coolest thing in a box,” he said. And that is probably Scions initial appeal.

The interior of the xB didnt strike me as “sophisticated.” Rather, it had the “plasticized” inside of a typical entry-level car; even the grab bars above the doors had an unfriendly feel to them. Granted, the models we saw didnt have all the optional extras that can be ordered, but I dont think it lives up to Farleys billing of an “upscale” look.

Given the brief glance that was allowed, the fit and finish of the interior components were up to Toyotas standards. The xB has a big, fat circular instrument cluster that is slightly off center with the steering wheel, with the black-on-white speedometer and a smaller rpm gauge (odometer) tucked into it. Its a bit better looking than the xA.

For those who like to have additional storage room, not only does the rear seat fold flat, but so does the front passenger seat. Now this is a decent feature, although the Scion models arent the first on the market with this level of flexibility.

The radio and heating and cooling controls are easy to reach and pretty straight forward. And, the seats were fairly comfy and offered good legroom in the front and back.

The xB has an excellent turning radius, able to make tight, low speed corners with ease. You can do a U-turn on a narrow side street without having to stop, backup and move forward again.

The suspension and steering does allow the driver to “feel” the road–every single pothole and bump on it to be sure. The xB certainly could have more compliant shocks.

Scion tries to compare the price of its xB with Hondas Element, noting that its van/SUV is thousands less. Well, the Element is much larger, with a ton of interior room for packing tons of gear in back, such as two mountain bikes with the rear seats folded out of the way. The xB cant do that.

Now that were comparing the xB to the competition, Id have to say that the xBs get up and go (acceleration) is somewhat on the sluggish side. Maybe you can burn a little rubber (not hard in a front wheel drive car)… maybe not.

The xB is well equipped though, with a 60/40 split-fold removable rear seat; air conditioning; amber instrument panel illumination; cargo area under-floor storage; choice of three wheel cover designs; chrome exhaust tip; exterior ground effects kit with front air dam, rocker panel extensions, and rear valence panel; driver and front passenger dual stage airbags; rear privacy glass; Pioneer 160-watt AM/FM/CD head unit, MP3 and satellite tuner capable, with six speakers; vehicle stability control and traction control.

Optional features include alloy wheels; carbon fiber appliqué for B-Pillar and fuel door; carbon fiber shift knob by OBX Racing Sports; cargo net; Cargo Tote by Nifty Products; clear tail lamp lens by TYC; cup holder illumination; Pioneer AM/FM/6-CD changer with 10-color change illumination; rear spoiler; fog lamps; seat-mounted side and front and rear side curtain airbags; leather wrapped steering wheel, red or gray color; LED interior light kit; removable roof rack; satellite tuner and auxiliary antenna; sports pedals by OBX; subwoofer by Bazooka Mobile Audio; Toyota Racing Development Sport Parts, 18- or 19-inch Racing Hart “Evolution” wheels with Pirelli P Zero tires, lowering springs kit, strut/shock set, sport muffler, performance clutch, quick shift kit.

The marketing presentation also left me and a few other journalists scratching our heads. First, I have to wonder why the Scion wont be offered in Canada. Granted, Toyota has just recently introduced its Yaris (dubbed the Echo Hatch) in hockey land, but wouldnt Scion sell to the same segment of young buyers? I guess if a Canadian wants a Scion, he or she will have to head south of the border and forego getting service at home. Not likely I suppose.

But, there may be one hint to the Canadian question in the Scions hood ornament design. The oval shaped emblem, with its shark-tooth like “S,” is the same shape and size as the Toyota emblem. So, if Toyota wants to introduce Scion models in Canada without setting it up as a separate brand, with the added dealer complications and marketing costs, they can just swap hood ornaments.

Next, the projected Scion buyer is supposed to be college-educated with an above average income for their age, yet they may need a little help with their financing (such as a co-signer) if they have a “B” or “C” credit rating. And, some Toyota dealers have put their Scion displays in their used car lots.

“Were not dealing with sub-prime customers,” Farley said, when asked. “And, with a cosigner, that brings their credit ratings back up into an A average.”

Still, well have to see how Scion performs as is rolled out across the country. Toyota normally researches its market thoroughly, so it will be interesting to see if its initial success in California will continue elsewhere.

Scions trouble may lie in its “trendiness.” Can Toyota change the design fast enough to meet quickly changing fashion tastes? Particularly, Im thinking of the boxy exterior on the xB, but the xAs “me too” looking exterior also leaves a fair bit to be desired.

With various SEMA companies providing interior and performance components, any owner should be able to “reinvent” the image of their Scion, as their pocketbook will allow. And, Toyota will limit or increase the production of these niche vehicles as the market demands (100,000 or fewer units per year). They wont keep a model around long if its worn out its welcome.

But realistically, Honda, the class leader in the youth market, also boasts SEMA aftermarket manufacturers with loads of personalization goodies for its relatively low-priced Civic and Element models, one of the reasons the “Civic Nation” has been founded.

Still, if I was a betting man, Id still say the odds were in Toyotas favor to be successful based on its track record with Lexus. While the two divisions are diametrically opposed, Toyota can never be taken lightly.

Will Scion surpass Honda, or even Volkswagen, as the youth brand of choice? If Honda and Volkswagen continue to allow their off-the-shelf products to under-perform, whether in actual acceleration and handling for the former and reliability problems for the latter, it wont be too long time before the Toyota upstart starts chipping away. The competition had aught to sit up and take notice.