Here’s Why Toyota Isn’t Giving Up on Scion

Scion FR-S

Toyota (NYSE:TM) was a dominant force in the auto industry in August, taking the No. 2 spot in U.S. sales, but there wasn’t much in the way of good news for its Scion brand. Earlier in August, Toyota announced dealers could feel free to drop Scion from their portfolio without penalty. In a season of brisk auto sales, Scion actually fell below its 2012 numbers in August. Yet that won’t stop Toyota from committing to its youth brand. Here’s why.

More Dealers Than Expected Hopped on Scion’s Bandwagon

When Toyota launched Scion in 2003, the automaker expected about half of its 1,225 dealers would pick up the brand and make space for Scions in their showrooms, according to Automotive News. Then Scion sales outperformed expectations, and a bit too many dealers wanted a piece of the action.

As a result, more than 1,000 Toyota dealers ended up with Scions on their lots, roughly 400 more than expected. Company executives considered that number too high. As a result, Toyota offered dealers a get-out-of-Scion-free card last month, and numerous car sellers are take them up on it. Yet those that are sticking with the brand have new products on the horizon.