Why did Toyota stop making the Scion?

Toyota retired the Scion brand in 2016 to simplify its brand portfolio, reduce costs, and fold Scion models into Toyota-branded vehicles. The Scion name is no longer used for new cars, and the remaining models were integrated into Toyota’s lineup.

Background: The Scion era

Launched in 2003, Scion was Toyota’s attempt to reach younger buyers with a stand-alone brand, distinct styling, and a dealer network separate from Toyota dealerships. The strategy aimed to expand Toyota’s market share by appealing to a different customer segment, but it faced ongoing challenges around branding, dealer logistics, and profitability.

Key questions around the decision

In the mid-2010s, Toyota evaluated whether maintaining a separate Scion brand was sustainable in a changing automotive market. The company cited costs associated with two brands, overlapping product lines, and the complexity of operating a dedicated Scion dealer network as part of the rationale for consolidating models under Toyota.

Reasons Toyota discontinued Scion

Below is a concise look at the factors Toyota highlighted and observed in practice as the brand neared retirement. The list captures the main drivers behind the shutdown.

• Costs and complexity of maintaining a separate “pure play” brand and its own dealer network


• Sales performance that did not meet internal expectations for growth or profitability


• Strategic desire to simplify Toyota’s brand portfolio and leverage shared platforms


• Overlap between Scion products and existing Toyota offerings, reducing incremental value

Overall, Toyota argued that a single-brand approach would streamline development, marketing, and distribution across its global operations, enabling faster product updates and better resource allocation.

What happened to Scion models after the closure

When the brand was retired, Toyota began transferring or discontinuing Scion models, rebranding some as Toyotas or incorporating them into existing Toyota model lines. This helped maintain continuity for customers and kept the vehicles within Toyota’s global certification and parts ecosystem.

• Scion FR-S was rebranded as the Toyota 86 (marketed as the Toyota 86 in many regions), joining Toyota’s sports-car lineup


• Scion iA was rebranded as the Toyota Yaris (later commonly marketed simply as Yaris in several markets)


• Scion iM was rebranded as the Toyota Corolla iM, and later folded into the Toyota Corolla Hatchback family


• Scion tC was discontinued with no direct Toyota successor


• Scion Xb and Xd were not retained as distinct models; their roles were absorbed into other Toyota models or segments (e.g., small crossovers and hatchbacks) over time

These transitions reflect Toyota’s aim to preserve the value and practicality of the Scion models while aligning them with a single, centralized brand strategy.

Current status and legacy

Today, Toyota markets its vehicles under a single global brand in most markets, with the former Scion models continuing as Toyota-nameplates or as part of Toyota’s broader product lineup. The move is widely viewed as a case study in how major automakers balance niche branding against the efficiencies of a unified brand architecture. The Scion experiment provided insights into targeting younger buyers, but the eventual decision favored consolidation to streamline operations and product development.

Summary

In short, Toyota’s decision to stop making Scion stemmed from a combination of cost pressures, brand management complexities, and the strategic desire to simplify its portfolio. By folding Scion models into Toyota-branded vehicles, Toyota aimed to reduce duplication, accelerate product development, and maintain continuity for customers within a single, global brand. The Scion era ended, but several of its models lived on as Toyota products, while others were discontinued without direct successors.

Why did Toyota kill off Scion?

Toyota discontinued the Scion brand due to a combination of declining sales, the inability to connect with its target younger demographic, and internal redundancy with the Toyota brand itself. The 2008 financial crisis impacted young buyers' ability to purchase new cars, and competitors like Hyundai and Kia offered more appealing value propositions, making it harder for Scion to succeed. Ultimately, Scion's models were no longer compelling enough and cannibalized sales from Toyota's own entry-level cars, so the brand was absorbed into the Toyota lineup.
 

• Failed to connect with target audience: Scion was created to attract younger buyers, but it struggled to win them over in significant numbers. The vehicles were not seen as compelling enough, and the target demographic's financial limitations also played a role. 
• Internal competition: Scion's lineup became too similar to Toyota's own compact cars, such as the Corolla. Since the Toyota brand offered better resale value and brand recognition, consumers often chose the Toyota over a Scion, even when both were sold at the same dealerships. 
• Intensified market competition: Other brands, particularly Hyundai and Kia, improved their offerings with better styling, longer warranties, and stronger marketing, increasing the competitive pressure on Scion. 
• Product lineup issues: Some Scion models, like the FR-S, were praised by automotive press for their handling but lacked desired features like a more powerful engine option, which hurt sales. New models also failed to generate sufficient interest. 
• Financial strain: Declining sales and the cost of maintaining the separate brand made it a financial burden for Toyota. 

In February 2016, Toyota announced it was ending the Scion brand and folding the remaining models into the main Toyota brand, allowing them to continue to be sold as Toyotas.

Is Toyota bringing back the Scion?

No, the Scion brand is not coming back as an automobile marque, but Toyota has revived the Scion name for a new off-road side-by-side concept vehicle called the Scion 01. The original Scion brand was discontinued in 2016, and its models were absorbed into the Toyota marque. The new Scion concept uses a hybrid powertrain and was created as a testbed for future mobility ideas, not as a successor to the old brand.
 
You can watch this video to learn more about the Scion 01 concept vehicle: 40sPlanet Car NewsYouTube · Nov 4, 2025

• No, the Scion brand is not returning. Toyota officially discontinued the Scion brand in 2016, and its models were integrated into the Toyota lineup. 
• The name is being used for a concept vehicle. The Scion name has been revived for a new, one-off concept vehicle called the Scion 01, which is a powerful, hybrid-powered off-road side-by-side. 
• It is not a car. This is not a car or a car brand, but a powersports vehicle designed to test new concepts and technology. 
• It's a way to experiment. Toyota created the Scion 01 to serve as a "laboratory" to develop and test new ideas, leveraging its expertise in hybrid powertrains and off-road vehicles. 

Why did Scion fail?

Scion failed due to a combination of factors, including a misjudged target audience, a poorly received product lineup, changing market trends, and a lack of a clear brand identity, which ultimately led to declining sales and Toyota discontinuing the brand in 2016.
 
Product and market missteps

• Quirky and unappealing designs: While the initial designs were novel, some, like the iQ, were poorly received, and the overall lineup aged without enough exciting, new models. 
• Failed to connect with the target demographic: The brand was created to appeal to a younger, Millennial audience, but it ultimately failed to connect with them, partly because many could not afford the cars and younger buyers' priorities shifted away from radical styling and towards practicality, technology, and fuel efficiency. 
• Lack of SUVs and crossovers: The lineup was heavily focused on smaller cars, and as demand for SUVs and crossovers grew, Scion was not positioned to meet this trend. 
• High costs of accessories: The brand's business model relied heavily on profits from accessories, but financing became difficult during the 2008 recession, impacting sales significantly. 

Brand and strategy issues

• Lack of a clear identity: Scion's vehicles were essentially rebadged Toyotas, but the brand's identity was not distinct enough from its parent company. This created a confusing path for customers, and over time, some Scions simply looked like other Toyota models, which diluted the brand's purpose. 
• Poor marketing: The marketing efforts failed to build a strong, lasting connection with the target youth market and did not establish a clear brand identity separate from Toyota. 
• Infiltrated by older buyers: The brand's initial quirky appeal began to attract older buyers, diluting its intended purpose of capturing the youth market. 

External factors

• Global recession: The 2008 recession had a significant negative impact on Scion, which was heavily reliant on younger buyers who were particularly vulnerable to the economic downturn. 
• Changing consumer priorities: As time went on, younger consumers, the brand's target demographic, began to prioritize factors like technology, fuel efficiency, and practicality over the "out-of-the-box" styling and customization Scion offered. 

What did Toyota replace the Scion with?

The Scion iM is was for it's versatility, affordability and style. Meet the 2017 Toyota Corolla iM. Same great car, new badge. The Toyota Corolla iM will be replacing the 2016 Scion iM, but will be the same car inside and out.