Why Toyota Is Shutting Down Its Scion Brand
Toyota announced that it will stop the production of vehicles for Scion, a vehicle brand designed to appeal to younger customers. Its business model, which was based on a short product cycle and low prices in trade off for low dealer margins, failed to generate value following the recession. The brand makes up only 0.1% of our Toyota valuation.
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Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Toyota Motor
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