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Toyota May Expand Scion Lineup Beyond Three Models (Update2)

By Alan Ohnsman

March 19 (Bloomberg) -- Toyota Motor Corp. is considering additions to its lineup of youth-oriented Scion vehicles to win over a wider range of U.S. buyers, the brand's chief said.

``Should it be a youth truck, a youth SUV, an environmental car, a smaller car? We're studying right now to see which would be the greatest priority,'' Jack Hollis said in an interview today at the New York International Auto Show. ``There are more leading-edge people we can attract that may not be attracted yet to these first three products.''

Toyota, Japan's largest automaker, began selling Scions across the U.S. in 2004 as an experiment to draw buyers younger than those who typically purchased its Camry sedans and Corolla small cars. Scion sales peaked at 173,034 in 2006, before dropping 25 percent last year. This year through February, sales of its xB wagons, xD hatchbacks and tC coupes fell 6.7 percent.

Toyota has been vague about whether it would eventually expand the Scion lineup, previously saying it was content with three models. Still, the company will keep targeting ``trend- setting'' customers with Scion rather than aiming only for higher sales volume, Hollis said.

``If we want to grow, we need to do it through other offerings, and we are studying that pretty heavily,'' he said. One of those may include the iQ, a two-door minicar unveiled in Japan late last year, he said.

Scion now has the youngest average U.S. buyer, with a median age of 30, Hollis said today at a press conference to unveil the Hako, a two-door concept car with a squared-off roof and windshield.

``The Hako coupe is one of many concepts we are considering for the brand,'' Hollis said.

The Toyota City, Japan-based company has its U.S. sales headquarters in Torrance, California.

Toyota's American depositary receipts fell $1.76 to $100.84 at 4:15 p.m. in New York Stock Exchange composite trading. They have declined 5 percent this year.

To contact the reporter on this story: Alan Ohnsman at the New York Auto Show at aohnsman@bloomberg.net

Last Updated: March 19, 2008 18:07 EDT

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