Is it the end of Scion? Brand loses sales as 2nd-generation models struggle

The youth is no longer buying the hip-hopness of the xB, xD or the tC. Scion sales have been dropping for the past 16 straight months even with the two new redesigned models in showrooms since August. Sales peaked in 2006 while 2007 sales fell 24.8 percent to 130,181 units.

“We seem to be having more sales peaks and valleys than previously,” said Farlon Smith, general manager of Beechmont Toyota-Scion in Cincinnati.

Scion used to easily move 15,000 to 20,000 units per month, but January sales were a depressing 7,782.

Scion originally had 856 dealers in January of 2005, but as sales increased, so did the number of dealers. In January 2006, Scion sold more than 10,000 units with about 60 fewer dealers than it has now.

Toyota insiders have begun questioning whether the brand was built to last as sales per dealer decline faster than the overall volume.

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