2012 Scion iQ Starts at $15,265

When it goes on sale this October, the Scion iQ will not only be the smallest four-seater on the market, it will be one of the most affordable. Starting at $15,265 before $730 in destination charges, the iQ is one of the least expensive cars with an automatic transmission besides the 2012 Nissan Versa sedan ($12,760) and the 2011 Smart ForTwo ($12,490).

The iQ’s continuously variable automatic transmission is teamed to a 94-horsepower engine and gets an impressive 36/37 mpg city/highway and 37 mpg combined, which beats the ForTwo’s 36 mpg combined figure on premium gas and the Versa’s 33 mpg combined figure. That’s also the combined figure for the Ford Fiesta and Hyundai Accent with automatics.

The iQ comes well equipped with standard air conditioning, power windows, keyless entry, Bluetooth for phone and streaming audio, USB input, four-speaker Pioneer stereo, steering-wheel-mounted audio controls, 11 airbags, stability control, 16-inch steel wh1eels, folding side mirrors and trip computer.

Related
What's the Most Affordable New Car?

Toyota: Reduced Production To Last Until End of 2011

Toyota has been expanding its production slowdowns in response to the Japanese earthquake last month. Today, the company announced global production won’t be back to normal until November or December.

Nearly 150 parts that Toyota uses to build its vehicles – mainly electronic, rubber and paint materials — have been impacted by the natural disaster in Japan. Until Toyota can either fully restore production of the parts or find new suppliers we can expect fewer Toyota models at U.S. dealerships.

Toyota has already officially warned its 1,500 dealerships to expect shortages. “The potential exists that supply of new vehicles could be significantly impacted this summer," Toyota's U.S. general manager Bob Carter said.

Over the next several weeks, Toyota’s North American plants will operate at 30% capacity until June 3. Toyota expects North American production to be fully restored by August; about 70% of the vehicles Toyota sells in the U.S. are produced on this continent including the Toyota Camry and Highlander and the Lexus RX. Japanese production is currently operating at 50%; it will be back to normal levels by July. It will take several months to transport the Japanese-produced vehicles to U.S. dealerships. Vehicles like the Toyota Prius and most Lexus and Scion models are built in Japan.

While some assembly plants and parts factories will be idled in North America, Toyota is quick to point out that it has no plans to lay off any of its American workforce during this time.

Scion FR-S Sports Coupe Concept at 2011 New York Auto Show

• Looks like: Scion is finally backing its bark with bite 
• Defining characteristics: 2.0-liter boxer engine and rear-wheel drive 
• Ridiculous features: There’s virtually no clearance between the wheels and fenders; that’s a recipe for disaster against potholes  
• Chances of being mass-produced: Expect it sometime in the near future 

Scion sales have been in the doldrums as of late, partly due to of a lack of new, exciting vehicles to show. If the FR-S Sports Coupe concept is any indication of a production vehicle — there are strong indications it is — then Scion should have no problem recapturing the attention of the coveted Generation Y demographic … err, Millennials.

More Coverage of the 2011 New York Auto Show

The FR-S is a rear-wheel-drive compact sports coupe, which is Scion’s first rear-wheel-drive vehicle. If that weren’t enough, the concept is powered by a 2.0-liter boxer engine, another first for Scion. Subaru is known for its boxer engines, and this engine and the platform for which a production FR-S would be built upon are a part of a collaborative project between Subaru and Toyota.

Reduced Toyota Production May Lead to Shortages This Summer

Toyota has officially warned its 1,500 Toyota brand, Lexus and Scion dealers to expect supply shortages over the summer.

“The potential exists that supply of new vehicles could be significantly impacted this summer," Toyota's U.S. general manager Bob Carter told dealerships in a written memo. Dealerships may face shortages due to production delays and stoppages at Toyota’s North American plants because of the tsunami and earthquake in Japan.

Over the next few weeks, Toyota’s North American plants will operate at reduced levels, and production will be halted completely for five days at most plants this month, Toyota said in a separate press release. Some exterior colors will be changed, too, because of shortages of the chemicals used in making those paints, according to the USA Today.

Toyota currently has some 329,500 vehicles available in the U.S., according to Automotive News. That’s the equivalent of 50 days’ worth of supply; 54 days is the industry average for April thus far. Admittedly, Toyota’s inventory is in better shape than Subaru, Nissan and Hyundai-Kia, all of which have even tighter supplies, but Carter warns that supply will be “getting tighter” over the next few months.

Toyota operates 13 assembly plants in North America, producing vehicles that include the Toyota Avalon, Camry, Corolla, Highlander, Matrix, RAV4, Sienna, Sequoia, Tacoma, Tundra, Venza and the Lexus RX 350. A 14th plant in Mississippi is scheduled to start building Corollas this fall. Overall, about 70% of all Toyota models sold in the U.S. are made in North America.

Toyota Warns Dealers of New-Car Shortage This Summer (USA Today)

Toyota To Raise Vehicle Prices by $200-$900 in May

Toyota will raise its prices for almost all Toyota models by 1.2% to 2.2%, the automaker announced today. Most Lexus models will see similar price bumps, but most prices for Scion models will remain the same or decrease. Destination fees will remain the same.

The price increases go into effect at the beginning of May for North American-produced Toyotas such as the Camry and when Japanese-produced vehicles — including the 4Runner, Corolla, FJ Cruiser, Highlander Hybrid, Land Cruiser, Prius, RAV4, Yaris hatchback and Scion xD — arrive in the U.S. sometime in May.

Midcycle price increases are typical for all automakers. Toyota says the increases were planned well before the Japanese earthquake and the subsequent concerns surrounding parts availability. “These price adjustments were decided upon prior to the earthquake itself,” said Toyota spokesman Greg Thome. “The price increases were based off different market factors and seeing where our competition was pricing its models.”

The Toyota Tacoma, Yaris sedan, Scion tC and xB, Lexus CT 200h and LFA will keep their current pricing structure.

Below we include a list of the top models and their price change:

How Japan's Earthquake Impacts Car Shoppers

As Japan begins to recover from the tragic earthquake and tsunami of last week, there are many questions for U.S. consumers when it comes to one of the country’s chief exports: cars.
 
All of Japan’s automakers are shutting down their assembly plants this week, with most plants closed through at least Wednesday. There are numerous logistical reasons for the shutdowns including power issues and transportation; let alone the need for employees to reconnect with family and friends in the affected areas of the country.
 
Few automakers had assembly plants in the area impacted by the tsunami, but many suppliers are based there and have not been heard from since the earthquake, according to reports.
 
If just one part from one supplier is unavailable a new vehicle cannot be built, leaving a manufacturer to extend the shutdown.

Toyota Recalls iQ Small Car Overseas

Toyota is recalling 135,000 iQ subcompact cars in Japan and Europe because of a fault in its steering software. The iQ will go on sale in the U.S. under the Scion brand next year.

The company says there have been incidents reported of the power-steering warning light illuminating when drivers crossed roadside rumble strips.

While the recall doesn’t sound significant in scope or severity — no accidents have been reported — we’re pointing it out because some of the issues involving recalled Toyotas in the U.S. were diagnosed in other countries before being recalled here.

Toyota recalls 135,000 cars over steering fault (Financial Times)

Toyota, Scion Add Free Maintenance Programs

New Toyota and Scion vehicles will get two years or 25,000 miles free maintenance starting today, according to Toyota.

The maintenance plans include coverage on all normal factory-recommend services, including oil and filter changes, tire rotations, lubrication of key chassis parts/components and a 19-point inspection. The plans also include 24-hour roadside assistance.

Toyota decided to offer the service after receiving positive responses from car buyers who received free maintenance as an incentive during its summer sales events.

Toyota is the first full-line brand to offer free maintenance across its whole lineup. Toyota and Scion join Volkswagen, Volvo, BMW, Jaguar, Mini, Saab, Land Rover, Lincoln and Cadillac in offering free maintenance

2011 Scion tC Video

The Scion tC has been completely redesigned for 2011 and is now wider, faster and has better fuel economy. Unfortunately, there are downsides, such as a cabin that can feel cheap at times, according to Cars.com editor Kelsey Mays. The car is sportier, but that has compromised ride comfort, giving the tC a somewhat choppy feel on the highway. With a price bump to boot, is the 2011 tC all it’s cracked up to be? Watch the video to find out or read our full review here.

2011|Scion|tC

Cars.com Podcast: How We Picked Our College-Car Winner

Last week, we published our latest Cars.comparison that pitted three small cars against each other in a battle for the best pick for those heading to college. In this week’s podcast, editors Joe Wiesenfelder, Kelsey Mays and Mike Hanley discuss the reasons why the Honda Fit outdid the all-new Ford Fiesta and the Scion xD in the three-car faceoff.

Download the podcast via iTunes

Download this episode (right click and save)