Scion's iQ Thinks Tiny

2011-10-20

Toyota Motor Corp. has big hopes for its new micro car.
The tiny Scion iQ makes its debut on the West Coast by year's end. It will be rolled out across the country by next spring.
The $15,995 iQ is aimed at young, urban buyers who want agility, fuel economy and a tight turning radius for squeezing into small parking spots.
At 10 feet long, the iQ will be the smallest four-seater of any make sold in the U.S., and the fourth addition to Scion's U.S. lineup, said Scion Vice President Jack Hollis.
"It fits and goes anywhere," Hollis said, speaking in Detroit on Tuesday. "It will really be a car for the city."
The iQ's quirky looks and snub-nose front echo the Mercedes-Benz Smart car — a head-turning model that has sputtered in the U.S. market.
The pint-size Scion also will go up against Chrysler Group LLC's newest micro car — the Fiat 500. Next year, it will face competition when the gasoline version of the Chevrolet Spark arrives at U.S. dealers; an all-electric Spark is due in 2013.
Hollis added that studies revealed buyers might also cross-shop the iQ with the slightly larger Mini Cooper.
Despite growing interest from carmakers, minicars remain a micro segment. In 2010, Smart sold only 5,927 units of the similar size Fortwos — a figure that accounts for less than a half-percent of total U.S. vehicle sales, according to AutoData Corp.
"It's a very narrow market," said Bill Visnic, an auto industry analyst with Santa Monica, Calif.-based Edmunds.com.
"If you look at the trajectory of Smart, it hasn't been a growth market," Visnic said. "Of course, Smart has had other problems," he added, referring to transmission troubles and problems with the supply base.
Toyota execs are more optimistic, though, and point to a growing demographic of young city-dwellers looking for smaller cars. Hollis said Scion expects to sell 1,000 to 2,000 iQs a month once the car is fully launched in April.
The brand might also make the iQ available through car sharing, a service that allows drivers to rent cars for short time periods and pick them up curbside.
Designed by the carmaker's French studio in Nice, the iQ launched in Japan in 2008.
The iQ sold in the U.S. has a 1.3-liter, four-cylinder engine that delivers 94 horsepower. Toyota estimates its combined city-highway mileage will be 37 miles per gallon.
Standard features include vehicle stability control, electric power steering, keyless entry and Bluetooth connectivity.
"It's a real car," Hollis said. "It drives and feels like a Corolla, but it's in this tiny package."

CHRISTINA ROGERS
/ The Detroit News