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Why did Toyota discontinue Scion?

Toyota discontinued the Scion brand in 2016 to streamline its U.S. lineup, reduce costs, and fold Scion models into Toyota showrooms while preserving their appeal under the Toyota banner.


The move reflected a broader strategic decision: maintain access to Scion’s popular models without the overhead of a separate brand, and simplify operations across sales, service, and marketing. This article examines why the brand was retired, and what happened to its vehicles afterward.


Why the brand disappeared: key factors


Several factors combined to push Toyota toward ending Scion as a standalone marque. The following points outline the main considerations.



  • Profitability and sales performance: Scion failed to deliver sustained, scalable profitability despite early enthusiasm, making it hard to justify ongoing separate branding.

  • Brand integration costs: Maintaining a separate dealer network, marketing, and customer service for Scion proved costly and duplicative within Toyota’s existing structure.

  • Strategic focus: Toyota aimed to consolidate its U.S. showroom strategy around a single, stronger brand to improve training, parts, and service consistency for retailers and customers.

  • Product portfolio pace: An aging and limited Scion lineup hindered growth, complicating efforts to scale Scion as a distinct lifestyle brand.


Overall, the decision was driven by economics and the desire to simplify and strengthen Toyota’s brand presence in the United States.


What happened to Scion models after the discontinuation


After the decision, Toyota realigned several Scion models into its own lineup, while others were discontinued. Here is how the legacy of Scion lived on in Toyota showrooms.



  • FR-S, the sporty coupe, was renamed Toyota 86 and continued in production under the Toyota badge starting with the 2017 model year.

  • Scion iM was renamed Corolla iM as part of the Corolla family and was later folded into the broader Corolla hatchback lineup in some markets.

  • Scion iA was renamed Toyota Yaris iA and marketed as the Toyota Yaris in the United States.

  • Other Scion models, such as the xB and tC, were discontinued as Scion offerings, with some lacking direct Toyota-branded successors.


In aggregate, the Scion brand effectively ended as a separate entity, with several of its most popular models continuing under Toyota branding while others were retired.


Broader impact and market context


The discontinuation reflected broader industry trends toward platform consolidation, tighter cost control, and a unified brand identity to deliver a smoother customer experience across dealerships and marketing efforts.


Dealership alignment and customer experience


Integrating former Scion retailers into Toyota dealerships helped standardize sales, service, and parts—reducing confusion for customers who encountered Scion products in the market and simplifying the buying experience.


Product strategy and timelines


The realignment allowed Toyota to refresh its lineup more efficiently by introducing Toyota-branded successors for popular Scion models and phasing out the separate Scion name as part of a broader product strategy.


Summary


Toyota’s decision to discontinue Scion in 2016 was driven by a combination of underwhelming profitability, high operating costs for a separate brand, and a strategic shift toward a single, stronger brand identity. By folding popular Scion models into Toyota showrooms and marketing, Toyota preserved relevant models while eliminating the overhead of a stand-alone brand, marking the end of Scion as an independent venture and shaping the evolution of Toyota’s U.S. lineup for years to come.

Are scions as reliable as Toyotas?


Yes, Scions are generally as reliable as Toyotas because they shared the same engines, platforms, and manufacturing. Since Scion was a youth-oriented sub-brand of Toyota, a car's mechanical reliability (engine and transmission) is typically the same as its Toyota counterpart. However, some owners report potential issues with things like cheaper interior materials or specific engine problems, such as oil burning in some 2.4L engines. 
Why they are similar

  • Shared components: Scions used Toyota's engines and transmissions, so their core mechanical reliability is the same. For example, the Scion tC shared its engine and platform with other Toyota models. 
  • Toyota parentage: As a division of Toyota, Scion benefited from the same quality and reliability standards that Toyota is known for. 
  • Parts availability: Because they are essentially a Toyota product, parts are often the same and readily available through Toyota dealers. 

Potential differences and issues
  • Interior quality: Some owners have noted that Scion interiors can feel cheaper or less refined compared to a comparable Toyota model. 
  • Specific engine issues: Certain Scion models with specific engines had issues. For example, some 2.4L engines in early models were known to have problems with excessive oil consumption. 
  • Other mechanical concerns: Some users reported premature clutch failure on manual transmission models and other isolated problems, although these can often be resolved with maintenance. 



Is Toyota bringing back Scion?


No, Toyota is not bringing back the Scion brand for its regular car lineup; the brand was officially discontinued in 2016. However, Toyota recently used the Scion name to unveil an off-road side-by-side concept vehicle, the Scion 01 Concept, at the SEMA show in November 2025. This concept uses the Scion nameplate as a way to revisit its legacy of experimentation and innovation, applying it to a new product category.
 
The original Scion brand

  • Scion was Toyota's youth-focused brand, launched in 2003. 
  • It was discontinued in 2016, and its models were rebadged as Toyotas. 

The new Scion 01 Concept
  • Toyota is using the Scion name again for a one-off, high-performance side-by-side concept vehicle.
  • The Scion 01 Concept was introduced at the SEMA show in November 2025.
  • It is an engineering exercise intended to showcase new ideas for performance and adventure, fitting the original Scion's experimental spirit. 



What was the downfall of Scion?


The downfall of the Scion brand was a result of declining sales due to an aging and uncompetitive product lineup, a failure to connect with its intended young demographic, and a lack of SUVs and crossovers in its lineup. The brand also suffered from a lack of a strong, distinct identity and was financially unsustainable for Toyota, especially after the 2008 financial crisis. Ultimately, Toyota discontinued the brand in 2016, folding the more popular models into the Toyota lineup.
 
Key factors contributing to Scion's demise:

  • Aging and uncompetitive lineup: Scion's vehicle lineup became stale, with competitors introducing newer and more appealing models. Some models were also more expensive than their Toyota counterparts, leading customers to choose the more affordable option. 
  • Misjudging the target demographic: The brand failed to connect with its target young audience, with the average buyer age significantly higher than intended. Toyota's marketing and vehicles did not resonate with the fickle tastes of younger buyers. 
  • Lack of popular vehicle types: The brand did not offer any SUVs or crossovers, which are a very popular vehicle segment, further hurting its competitiveness. 
  • Financial struggles: The brand's sales peaked just before the 2008 financial crisis, which significantly impacted its young target market. The cost of maintaining a separate brand with low dealer margins became unsustainable, especially with declining sales. 
  • Weak brand identity: Scion's marketing did not create a strong, unique identity for the brand, and it became overshadowed by the more established Toyota brand. Many cars were essentially rebadged Toyotas, causing internal competition and confusion for consumers. 



Why did Toyota stop making scions?


Toyota discontinued the Scion brand primarily due to declining sales and a failure to connect with its younger target demographic, exacerbated by a lack of compelling new models and a crowded entry-level market. The brand's original average buyer age of 35 had risen to 43 by 2011, and many of its models were perceived as being rebadged Toyotas, creating overlap with the main brand's offerings and failing to establish a distinct identity. Ultimately, Toyota decided to absorb the remaining Scion models into the Toyota lineup to simplify its brand portfolio. 

  • Declining sales and market relevance: Scion's sales slumped, and it failed to maintain interest from its intended young audience, whose preferences had shifted. 
  • Target demographic shifts: The average age of a Scion buyer increased significantly over the years, moving away from the younger demographic the brand was created to attract. 
  • Market overlap: Scion's vehicles, often rebadged from Toyota's international lineup, competed directly with affordable Toyota models like the Corolla, which were often more popular and outsold Scion models. 
  • Lack of a clear identity: The brand struggled to differentiate itself from Toyota, and its lineup lacked the standout, desirable models needed to stand out in a competitive market. 
  • Failure to adapt to market trends: The brand didn't have enough crossover vehicles, a key growth segment in the automotive industry. 


Kevin's Auto

Kevin Bennett

Company Owner

Kevin Bennet is the founder and owner of Kevin's Autos, a leading automotive service provider in Australia. With a deep commitment to customer satisfaction and years of industry expertise, Kevin uses his blog to answer the most common questions posed by his customers. From maintenance tips to troubleshooting advice, Kevin's articles are designed to empower drivers with the knowledge they need to keep their vehicles running smoothly and safely.