Does Scion's future lie in Toyota's new iQ?

In the years since Scion introduced the second generation xB, the once-booming Toyota division has watched sales go stagnant. While rising gas prices have helped sales of the xB and xD hatch, both models are less fuel-efficient than their predecessors. Consumers and reviewers alike have lamented the loss of the lighter and more nimble Scions of years past.

Late last week, MotorTrend reported that Toyota is considering sending their IQ subcompact to US shores as a new Scion model. According to sources inside the Japanese automaker, the rebadged iQ will debut at the Los Angeles Auto Show.

The Toyota iQ was developed for the Japanese and European markets as a 2+2 competitor to the two-seater Smart for Two. At nine-feet, nine-inches long, five feet high and five-feet, five-inches wide, the front-wheel-drive IQ manages to squeeze in a diminutive rear seat that unfolds from the flat load floor.

While the rear seats aren't particularly spacious, the additional capacity make the iQ a more palatable prospect as an urban runabout for a single-car household.

The city car meme is reinforced by the iQ's exceptional fuel economy. When equipped with the 1.0-liter VVT-i SOHC inline-three and a five-speed manual, the iQ delivers a combined fuel economy of 65.7 mpg in the EU test cycle.

The iQ is also stuffed to the gills with safety features. In addition to usual alphabet soup of antilock brakes, side and front airbags and electronic traction control systems, the iQ offers the world's first rear passenger airbag. Since the rear seats occupy most of what would otherwise be the trunk, Toyota equipped the iQ with a rear curtain airbag which deploys in a rear-end collision if the rear seat is in use.

If the rumors are indeed true, the Scion-branded iQ would likely be offered with the 1.5-liter four offered in the Toyota Yaris, backed by either a five-speed manual or a version of the European market MultiDrive CVT automatic.

Ideally, the Scion iQ would be priced at about $16,000, putting it in direct competition with the Smart ForTwo passion coupe.

The logic behind selling the iQ stateside is that the city-friendly runabout would lend credibility to the brand's targeted urban demographic -- a concept that seems lost considering that the xB and xD are larger and heavier than their predecessors.

A 65 mpg commuter car with such quirky styling would go a long way toward granting the Scion brand a new, buzz-worthy model.

On a personal note, while I'm hesitant to give voice to the rumor mill, I would be pleasantly surprised if this one comes true. Speculation is inevitable in an industry where automakers rely on secrecy, but the rumor mill has also been used as a tool to lead competitors astray. Even though all the marketing logic adds up, take all of today's news with a grain of salt.

Naturally, as the Los Angeles Auto Show draws near, we'll be watching this one closely. Stay tuned.



[MotorTrend]

Requiem for the H3: one of the nation's largest Hummer dealer will close tonight

With sales run aground by soaring gas prices, General Motors is scrambling to sell the ailing Hummer division before year's end. Yet the process of courting buyers is bound to get worse with today's news.

The Wall Street Journal reports that Towbin Hummer of Las Vegas, Nevada - the nation's largest Hummer dealer — will shut its doors for good tonight.

Some may remember the Towbin name from short-lived reality show "King of Cars" on A&E.

By staking his claim as the biggest and best dealer in town, dealer and brand aficionado Dan Towbin capitalized on the Sin City market to become one of the nation's largest Hummer dealers. During the dealer's best year, Towbin Hummer sold five percent of all Hummers in the nation.

But now, Sin City has shunned the rolling testament to excess, leaving Towbin to stop selling the lumbering 12-mpg leviathans and start selling diminutive Smart ForTwos.

While Towbin isn't the first dealer to close, it is by far the largest — and thus, the most problematic for GM. Now that the capital of conspicuous consumption has passed on the Hummer for smaller fare, it is clear that twilight draws near for the brand.

Listen to the bell, HUMMER... it tolls for thee.

[WSJ.com]

10 years and 1 million Smarts later, a celebration

What began in the early 1970s as a Daimler-Benz concept car for the urban future cemented its legacy as one the first automotive icons of the 21st century today.

Celebrating ten years of production and one million models built, a silver-on-black forTwo passion coupe rolled off the production line to a suitably sized celebration at the the factory in Hambach, France.

In an era defined by high gas prices and urban congestion, the car's distinctive styling and innovative packaging have proven their merit. Sales in the United States outstrip supply and the forTwo will make its debut in the Chinese market next year.

Smart forTwo to receive gas saving upgrade this fall

Already renowned for being stingy with gas, the nimble Smart forTwo will become more efficient with the introduction of auto-stop engine management beginning in October.

Despite being marketed by Smart as a "micro hybrid", the name is misleading.

The forTwo will not carry any batteries nor an electric motor as found in the Toyota Prius or Camry hybrid; there simply isn't room for either.

Instead, the auto-stop feature will save fuel by shutting down the forTwo's engine and shift to neutral as the car coasts to a stop. The engine will shut down when the car slows below five miles per hour and the brakes are applied. The engine will restart immediately when the brakes are released.

City fuel economy will rise by eight percent, to 36 miles per gallon in the US EPA drive cycle. Carbon dioxide emissions will be reduced to 103 grams per kilometer, according to preliminary tests by Smart.

The auto-stop upgrade will also come standard on the diesel-powered CDI Smart range when production restarts next year. However, the diesel models will not be coming to US shores.

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