Toyota Raises 2005 Forecast for Scion Sales

Toyota Motor Corp. on Monday raised its 2005 forecast for U.S. sales of Scions to 140,000 vehicles. The 2-year-old brand, added to attract younger buyers, now accounts for a majority of the automaker’s growth.

Sales through May more than doubled from a year earlier to 62,003 and were on pace to reach almost 150,000 for the year. Mark Templin, manager of the brand, said production capacity would hold down the growth. Toyota in January forecast annual Scion sales of at least 120,000.

“Unless something changes between now and the end of the year we will not have the production to be able to sell 150,000 cars,” Templin said from Toyota’s U.S. headquarters in Torrance. “We think that we have the potential to do around 140,000.”

Scion at that level would rise 41% from last year’s 99,259. Its growth this year through May accounted for just over half of Toyota’s 10% increase in U.S. sales. Toyota -- Japan’s largest automaker and No. 4 in the U.S. -- added the brand in 2003 in California and expanded it nationally last year.

Scion sells the xA hatchback, xB wagon and tC coupe. Base prices for the three models range from $13,045 to $17,515, thousands of dollars less than the current average transaction price for a new vehicle of $24,520, according to CNW Marketing Research.

Toyota’s U.S. shares dropped 81 cents to $72.01. They have fallen 12% this year.