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Scion pondering move upmarket?

Scion is simultaneously celebrating its ten-year anniversary with the 10 Series models and trying to figure out what to do with itself over the next ten years. Once a go-to consideration for young, first-time buyers who wanted something cool and different, in 2013 it has a model everyone is still talking about in the FR-S, a model few are still talking about in the iQ, and three models in between in the tC, xB and xD that make everyone wonder, "What happened?"
Automotive News spoke to Toyota's North American CEO, Jim Lentz - he was the VP in charge of Scion when it launched - about the options, and Lentz said one of them could be a move upmarket to challenge the established luxury brands that are moving downmarket. "There's going to be a big need in the $25,000 range for a fun-to-drive, nice-looking, value-oriented product," he said, and the FR-S, which starts at $25,255, could provide the platform for Scion to climb up a notch or two in price and perception. An idea like this could conceivably work in tandem with a proposal to move entry-level Scion products over to the Toyota brand - but remember, this is all just ideas on a whiteboard at the moment.
As opposed to an "entry-luxury fighter," the brand could swing back to the other option that was considered when it was formed, directly challenging the Korean makes that have usurped its cachet with first-time buyers. Lentz said Scion could go either way, and the tone of the piece seems to indicate that the final direction is still a ways away from being resolved.

Toyota settles complaints with states Attorneys General for $29 million

Toyota announced today that it has reached a settlement with the Attorneys General of 29 states and one US territory that will resolve their complaints relating to recalls performed by the automaker from 2005-2010, including those related to sticky accelerators and malfunctioning floor mats that may have contributed to cases of unintended acceleration.
The settlement includes a payout of $29 million to be divided among the states and US territory, as well as a commitment from Toyota "to take steps to make vehicle information more easily accessible to consumers to help them operate their vehicles safely and make more informed choices." The settlement also has Toyota continuing its rapid-response service teams and quality field offices that were put in place shortly after the largest of the recalls from 2010, as well as a "range of customer care amenities for owners of vehicles subject to certain recalls," though the press release below isn't specific about what those amenities might be.
This settlement marks the second major step in the last few months that Toyota has taken to settle legal disputes surrounding the unintended acceleration recalls, the first being a $1.4 billion settlement to address economic loss suffered by owners of current and past Toyota vehicles that may have lost value on account of these recalls.

Volkswagen could outsell GM in China for the first time in nine years

As of the end of November, Volkswagen had sold 70,000 more cars than General Motors in China in 2013, making it appear inevitable that VW will outsell GM there. The feat would return the German brand to the top of chart in China for the first time in nine years, but even the second-place getter won't be complaining too loudly: both automakers sold more than three million vehicles in a market pegged to hit 16 million sales this year.
Volkswagen said it could have sold more cars if it had had more production capacity in China. The arrival of a new-to-China Audi A4, a China-built A3 sedan, the VW Bora and Skoda Octavia, as well as an $18.2-billion-euro investment in the country to construct new factories, means VW should see its numbers grow in 2014. GM's lineup is expanding next year, too, adding four Chevrolet nameplates and two vehicles to its Baojun brand as it tries to get to five million in sales by 2015.
Among other automakers, Ford benefited from good product and woes for Japanese automakers over a territorial dispute with China, outselling Toyota by almost 32,000 units through the end of November. The Ford Focus is China's best-selling vehicle so far this year.