Scion, Toyota's youth-focused brand, was officially discontinued in 2016 after a 13-year run. The decision was a strategic one by Toyota to reintegrate its most successful Scion models back into the Toyota lineup, effectively ending the need for a separate brand. The primary reasons were shifting market demographics and the brand's failure to consistently attract a younger audience as originally intended.
Initially launched in 2003, Scion's mission was to bring a new generation of buyers—primarily Gen Y or Millennials—into the Toyota family. It pioneered a no-haggle, pure-price strategy and offered highly customizable cars like the xB and tC. For a time, it was a success, creating a unique subculture. However, the 2008 financial crisis severely impacted its target market, and the brand never fully recovered its sales momentum.
A key factor was that Toyota itself began evolving. By the mid-2010s, mainstream Toyota models like the Corolla and Camry had adopted more stylish, aggressive designs and advanced technology, making them appealing to the very buyers Scion was meant to attract. Scion's unique selling proposition had faded. Furthermore, the rise of subprime auto loans meant that younger buyers who previously needed Scion's affordable, simple pricing could now more easily qualify for loans on more established Toyota models.
The transition was handled smoothly. Toyota honored all warranties and continued providing parts and service through its extensive dealer network. The most popular Scion models were simply rebadged as Toyotas, ensuring their legacy continued.
| Scion Model | Fate after 2016 | Key Reason for Reintegration |
|---|
| FR-S | Became the Toyota 86 | High-performance coupe strengthened Toyota's sports car lineup. |
| iA | Became the Toyota Yaris iA (Sedan) | Added a competitive subcompact sedan to Toyota's offerings. |
| iM | Became the Toyota Corolla iM (Hatchback) | Filled a critical gap before the new Corolla Hatchback arrived. |
| tC | Discontinued entirely | Coupe market segment was in significant decline. |
| xB | Discontinued entirely | The unique boxy design no longer aligned with market trends. |
Ultimately, Scion wasn't a failure but a successful experiment that had run its course. It provided valuable insights into a new sales model and customer preferences, which Toyota ultimately applied to its main brand, making it stronger.
