Originally Posted By: 440Magnum
Originally Posted By: Anies
The Scion division was a resounding success in terms of "bringing in the younger generation". It also brought afford ability into the line up.
I simply disagree that adding a whole car line (and its associated overhead) is a good or permanent way to fix that kind of problem. Oldsmobile didn't start out as an "old coot's car," it became that through neglect and corporate infighting that gave the youth-oriented cars to other divisions. Oldsmobile was once a muscle car powerhouse with a good young to mid-age following. Scion could easily become the next old folks car for Toyota, or get lost to youth in the next economic crunch. A more practical approach seems to be paring down the number of "nameplates" and diversifying models within existing lines to attract new buyers. Its working wonders for Cadillac, where the CTS and particularly the CTS-V is attracting pretty much the optimum customer- pre-middle-age people at the height of their purchasing power, not retirees and not youth that will bail to the used car market at the first hint of economic distress.
And since when did base Toyotas become "not affordable" so that a lower-end line is needed? If a fresh college grad can't buy a Corolla, then Toyota has truly lost one of its core values.
Your failing to see the point of it all. Toyota SET OUT to create a division that was a low cost addition to itself. Scion has been successfully marketed. You may disagree but you can read just about anywhere on their financials since 2004/2005. Now due to its low price point older people are buying into the line rather than Toyota's own because of price!
Scion is hip, it's cool and it stands out amongst the younger crowd, the old Honda generation of tuners. The old 240SX / 300ZX generation of cars. You will probably find more people tuning a tC than a new Civic or Civic SI due to price point and availability of parts. Older style Civics while a dime a dozen are hard to find at reasonable prices for what they want to do to them.
Toyota was always seen since day one as the working mans car. The Celica was sporty but by no means a stellar seller to the youthful crowds. The Supra was a kid car at heart but pricing didn't reflect that.
Cadillac CTS is beyond the price of many youth. Toyota was overpriced on their vehicles, just as Honda is. During the keynote speech of Toyoda's Grandson whom is taking back the company he even stated that they were charging more for their product than they should have been. The Camry has been bumped up over 4/5k since 99. Secondly a Camry is not "cool" to kids.
A seperate division is smart when it succeeds.
Scion - 16-25 Demographic Income +
Toyota - 26+ Income ++
Lexus - 30+ Income ++/+++
And it's horrible when it fails:
Pontiac
Saturn
Hummer
Mercury
Oldsmobile.
Granted its nothing against the cars, but the thinking behind the branding. Nearly the SAME body style, only difference was slight styling cues.
GMC Jimmy vs Chevy Blazer?
2 tone paint?
Mercury Mariner / Lincoln
Badgine, slight interior accent changes.
The big 3 were notorious for this, as were the Japanese/Import manufacturers. But they started to change their modeling come early 2000/mid 2000. Lexus vehicles for the most part now do not have a Toyota mirrored body. Internals are also somewhat more differentiated.
Ford is working towards that as we speak by axing certain lines and retooling others. But is not there quite yet.
GM has a lot of work ahead of them.
Dodge as well.
If you can market, and differentiate your products from themselves than its a smart move.
Scion, Toyota & Lexus are different age demographics, different styling queues for different folks.
It's a breakdown of age segments that actually works. Honda no longer has a Civic that many youthful individuals can afford, probably only the Si models which sell for way over what they should. Honda's low end is typically very low performance wise(remember youth).
Honda has a base Civic which costs more than previous Civics. The Honda fit while nice is a peppy 75+hp motor). Honda is where Toyota was pre-2004/2005, pricing is hurting their younger segment, have you recently looked at their pricing on vehicles that are equipped similiarly to other brands? Nissan is somewhat marketed at young, but mostly middle aged demographic of the 26+ market.
Infinity , Acura and Lexus are practically the same, Infinity is the sportier of the bunch.
