AD #1792 – Toyota Puts Scion to Pasture, GM Posts Strong 2015 Earnings, Use of Structural Adhesives Explodes

February 4th, 2016 at 11:34am

Runtime: 6:47

- GM’s 2015 Earnings
- GM Opens New Performance Center
- Toyota Kills Off Scion
- New Active Aerodynamic Trick
- Use of Structural Adhesives Explodes

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36 Comments to “AD #1792 – Toyota Puts Scion to Pasture, GM Posts Strong 2015 Earnings, Use of Structural Adhesives Explodes”

  1. Rob Says:

    Looks like their are opportunities for the manufacturer that develops a smaller spot-weld head to be used on a robot.

  2. Rob Says:

    I never really understood the business plan behind Scion. Toyota had, and still has a great reputation for building quality cars. They could have just as easily appealed to the young buyers under the Toyota nameplate via marketing. Why introduce a different unknown car brand when you already have a great reputation? I remember when it launched and people called them Skyon or Sion. The problem with trying to launch a new hip brand for young people, is it appeals to one generation and then once those folks grow up the next generation doesnt want what their parents drove. Its no longer cool.

  3. Lisk Says:

    Toyota execs are putting the blame for the demise of Scion on the wrong shoulders. I don’t believe the market changed, but instead it was the lack of exciting products. The original Xb & Xa were light, quirky, and practical, however their replacements went against everything the originals embodied. The Tc should have been a Celica, and the FRS too pricey to Scions market.

    I am also a bit curious about the long term effectiveness of structural adhesives. Plastics tend to degrade over time and I am worried as to whether a 30-year old CTS will still be structurally sound. I know aircraft have been using adhesives for decades, but they have a much more rigorous maintenance program than cars.

  4. Phil Says:

    Any word on whether the Scion iM will be named the Matrix?

  5. Bradley Says:

    I still have my eye on a Scion iA (Mazda). It doesn’t bother me what name is on the car.

    The iA would be a nice little upgrade from my Yaris sedan. Improving, power, mpg and size ever so slightly over the Yaris sedan.

    I guess it may become the Yaris Sedan. As there isn’t one currently.

  6. Kit Gerhart Says:

    After they dropped the first generation xB, Scion had no reason to exist. It took Toyota about 8 years to figure that out.

  7. marshy Says:

    Ok, I’m in the mood to nit-pick:

    1. The space age was the 60s and 70s, wasn’t it?

    2. I believe that a company reinvests earnings, not profits. So if GM spends money on a new tech center, those costs come out of earnings, not profits. Correct?

  8. marshy Says:

    oh, yeah. Good riddance Scion. Hello FT86!

  9. Kit Gerhart Says:

    The iA would be a good replacement for the current Yaris, if they will sell it to us as a hatchback. I don’t get the point of sedans that size, but yeah, I guess I’m un-American, when it comes to tastes in cars.

  10. Jon M Says:

    I really have to wonder what took Toyota so long to kill off Scion; it was a one hit wonder that should have ended years ago. From the outside, and at least to me, it seems as if Scion came out with a hit, patted themselves on the back and went home! There was no rhyme or reason to the brand after that. It might have taken Toyota far too long to shut Scion down, but at least they finally have.

  11. Kit Gerhart Says:

    I assume that all of the non-Scion Toyota dealers will now sell the re-badged cars. The people at the Indiana dealer where I bought my Prius will like that, since they will now get to test out, and sell a few of the GT86, or whatever they will call the FR-S when re-badged as a Toyota.

  12. HtG Says:

    I promise this will never happen again

    Coming at me today on the highway was a Porsche 928. As I took the off ramp I saw a Nissan CrossCabriolet behind me.

    This will never happen again

  13. Brian Little Says:

    It could be interesting to have an Autoline Garage that discusses how technicians repair adhesives. I suspect that adhesives are going to change how body shops work.

    Sincerely,

    Brian Little
    Marion, Iowa

  14. Jon M Says:

    @7 marshy – earnings and profits can be synonymous. Generally speaking, the net profits that a (public) company earns go first to dividends (when applicable) for shareholders and the remainder into retained earnings. GM could use retained earnings (cash) to fund the tech center and/or use debt or equity financing. Profit growth, earnings per share, and other financial factors could make acquiring working capital easier/cheaper.

  15. Chuck Grenci Says:

    There was an article in the business section of my local paper that explained GM’s profit a little better; there was a 3 billion (one time) accounting adjustment this year that made the bottom line look real real good. Even without the 3 billion, profits would have been good (but a little accounting manipulation put the profits “over the top”).

    I think I remember some (of us) that didn’t think Scion was such a good idea (way back when); as stated, Toyota already catered/pandered to the youth market so they didn’t need to create another brand.

  16. Buzzed Says:

    I suppose that the idea of scion was really for marketing you could come out with edgy product under a different banner. If it works you bring in new customers that wouldn’t necessarily shop your line while not alienating your customer base.
    So I would say it’s failure is due to lack of product and or bad advertising. I’m pretty sure a survey would show that most people are fairly un aware of the Scion brand.

  17. Kit Gerhart Says:

    Scion was conceived as a “youth brand,” but I remember reading years ago, that the actual buyer demographic was not particularly young. A number of “baby boomers” bought the first generation xB. The only Scion driver I actually know, is a 50-some woman with a tC, a rather underwhelming car.

  18. Chuck Grenci Says:

    Correction on my post #15, the one time accounting adjustment was for 3.9 billion (I originally posted 3 billion). That being said, the article continued, and stated that profits were so good that the profit sharing (for employees) would be $11,000 each. This as it should be, IMO; if the workers get fair (not inflated) salaries, then they should reap rewards through profit sharing. Again, JMO

  19. jerry Says:

    @ Brian Little

    Body Shop’s have been useing adhesives from about 1995 it is something that new to them.
    WE have been doing replacement panels that were spot welded with adhesives with out problem.

  20. jerry Says:

    Hay, that is not new to them.

  21. Bobby T Says:

    A lot of Toyota’s styling is ho-hum. If they want to attract the youth market, they should go for better styling. They already have reliability on their side.

  22. pedro fernandez Says:

    The 2nd gen xb came out to address all the “critics” who lambasted the original for being too small, underpowered and noisy. There are times when you should ignore these critics and go with your gut, a slightly larger version of the original, perhaps based on the Corolla platform and powertrain, would have been a smarter choice.

  23. pedro fernandez Says:

    If they don’t replace the current Yaris, with the much better iA, they’re crazy!

  24. Kit Gerhart Says:

    22 When Kia are ready to re-do the Soul, they need to be careful not to listen to the “critics” too much. The current one is very successful, and I suspect the people buying them don’t particularly want bigger, faster, thirstier, and more expensive.

  25. pedro fernandez Says:

    With the current gas prices, I would not be surprised if Kia porks up the Soul as well.

  26. Kit Gerhart Says:

    Probably so. With cheap gas, bigger would be ok, up to a point, but it needs to continue to look similar. That is part of the appeal to many buyers.

  27. HtG Says:

    “None Shall Pass”

    The credo of the old man who hasn’t adjusted to no longer being in charge of jack squat. Left lane version; you shall not pass them even on the right. Take heed, upstart.

    Don’t be that man

  28. Brett Says:

    Nissan used “Datsun” to avoid “losing face” when entering the American market once upon a time.

    Perhaps that was the purpose of Scion when staid, conservative Toyota decided to break out of the mold in the American market.

  29. HtG Says:

    Scion

    At least Toyota still has Jack Hollis, even after iQ didn’t work out. I’m thinking of that other carco* that likes to execute executives that don’t succeed at ‘volunteer’ missions.

    * “death ground” may not be best practice all the time.

  30. HtG Says:

    * It’s Sun-Tzu, Art of War

  31. aliisdad Says:

    RIP Scion!! A friend drives a Scion two-door car, maybe the Tc?? Anyway, I drove it a couple of weeks ago for a very short time, but it seemed like a very nice compact car… It is about the size of maybe a Corolla, and it has nice styling (not the “goofy” look of most of their models)… It is kind of funny, now, but while I was in it I thought why was this a Scion instead of Toyota…
    Anyway, Toyota is known by many consumers for quality and good value, so it is probably best to meld the lesser known Scion into the Toyota family…

  32. Kit Gerhart Says:

    The tC is the current Scion that will not carry over as a Toyota. It is ok, and is a rare configuration I like, a 2 door hatchback, but doesn’t drive as sporty as it looks, is thirstier than it should be, is not too quiet, etc. It’s probably reliable, though.

  33. Lex Says:

    Great move Toyota in shutting down the Scion Brand.
    I wish GM would do the same in North America. Toyota needs to concentrate on improving the Rav 4 to overtake the Honda CR-V in the the compact SUV market. Also Toyota needs to introduce a new model to compete against the HR-V. The only issue I have with the HR-V is the tiny power plant under the hood. I always thought of Scion as a dilution of the Toyota Brand. In other words a “watered down” Toyota. Looking forward to see what Toyota does with this new opportunity to free up very valuable capital and manufacturing resources. Go Toyota!

  34. Kit Gerhart Says:

    We’ll see how the carry over Scions do as Toyotas. They, presumably, will be sold in more dealers. I’d think the iM could very easily sell better as a Toyota Matrix.

  35. Rob Says:

    The perfect Jeep Rambler
    http://www.msn.com/en-us/autos/enthusiasts/hell-hog-hellcat-powered-2012-jeep-wrangler-unlimited-6×6/ar-BBp8Bj2?li=BBnb7Kz#image=BBp8JzX|1

  36. KEVIN Says:

    SAD TO SEE AND HEAR THAT SCION DIDN’T CATCH ON AS WELL AS IT DID BACK IN THE EARLY TO MID 2000′S I WAS LIKED THE ORGINAL XB WHEN THEY FRIST CAME OUT WITH THE SCION BRAND BACK IN 2004 HERE ON THE EAST COAST THE ONLY THING DIDN’T LIKE ABOUT OR SHOULD I SAY COULD NOT GET USE TO ON A DAY BY DAY BASIS ON THE ORGINAL XB IS THE INSTRUMENT GAGUES WHERE ALL IN THE MIDDLE THAT MADE ME FEEL A LITTLE BIT AKWARD IF TOYOTA AT THAT TIME WOULD HAVE FIXED AND CORRECTED THAT PROBLEM I MAY HAVE CONSIDERED BUYING ONE . BUT THEY DIDN’T REST IN PEACE SCION