Diversity Key to Scion Plan

The success of Scion, Toyota Motor Corp.'s flying leap into the youth market, hinges almost completely on marketing.

Toyota acknowledges it is taking a huge risk with the new brand, which is set to launch in June in California with its boxy xB and xA. Brand image and Toyota's approach to the Generation Y demographic could make or break Scion.

Adding to the marketing complexity is the expectation that Scion will draw customers from many minority groups. But Scion views its diverse appeal as a strong asset.

“When we think about youth in America, we think diversity,” says James Farley, vice president of Scion.

Farley says he is “counting on” minorities to comprise the majority of Scion buyers.

The xB, in particular, has generated interest among young minorities: “The vast majority of people who love this vehicle are ethnically diverse,” Farley says.

Scion expects its vehicles to appeal to several minority groups, including African-Americans nationwide, Asian-American youth on the West Coast and young Hispanics stretching from Miami to Chicago to Los Angeles.

“The Hispanic population is enormous, and it's growing,” Farley says, especially in the states where Scion expects to capture most of its sales.