Scion Pickup Still a Possibility - How it Happens
At the New York International Auto Show, I had the opportunity to speak with Scion Vice President Doug Murtha. He told me the problem is two-fold: Chicken Tax and Scale.
Since the 1960s, the U.S. has had a 25 percent tariff on light truck imports. This "Chicken Tax" has helped insulate the U.S. automobile industry from foreign competition and has kept foreign pickups out of the U.S.. In fact, it was the big reason for the downfall of the VW bus craze during that time period. The tariff was actually lumped into a larger policy in response to U.S. chicken exports to Europe. This is where it gets its name. Over the years, all the other tariffs have been dropped except for light trucks.
With regards to Scion, if the Chicken Tax was dropped, they could look at ways to build the truck and import it into the U.S. You may be wondering why they don’t just build it in the U.S. This is the second point – scale.
In order to make building a Scion pickup, they would need to produce and sell around 100,000 units. Currently, Toyota has only the San Antonio, Texas plant to build trucks. And this plant is at or beyond capacity (depends who you ask). This capacity constraint is due to the fact that both the Tacoma and Tundra are built in San Antonio, and both trucks are selling very well.