The information gathered by the German newspaper WirtschaftsWoche has turned the automotive industry on its head: “Volkswagen will stop manufacturing SEAT“. The claim is based on documents the outlet says it has obtained and that lay out a still confidential restructuring plan for the Volkswagen Group.
This plan would include ending the SEAT brand by 2029 at the latest to focus on CUPRA.
A restructuring plan that includes factory closures and up to 100,000 job cuts
In any case SEAT calls for caution regarding what it sees as different circumstances in Germany and Spain and insists that no decision has been made.
This extensive restructuring plan would also involve the dismissal of up to 100,000 workers (50,000 outside Germany) through retirements, voluntary exits and a restrictive hiring policy, in exchange for employment guarantees.
Also proposed are the closures of the Zwickau, Emden, Hannover plants and the Audi facility in Neckarsulm, and the halving of the model range, as well as simplifying (as has been done in other companies for some time) the configurations and equipment of the models.
From SEAT they insist that nothing is set in stone: “As of today no decision has been taken. We will inform at the appropriate time about any strategic decision affecting SEAT S.A.” but they note that “the global context has changed considerably, which has had a strong impact on the automotive sector, especially over the past year” and that “the Volkswagen Group is working on a transformation plan for all its activities in order to strengthen its competitiveness and efficiency”.
This plan will be voted on again tomorrow by the Supervisory Board, since it was rejected in an initial round in July.
Recent sales data detail that “CUPRA remains a key factor in the company’s results” and that it is Raval who drives the brand’s evolution. However, SEAT’s disappearance has been on the table since 2022, when the brand’s continuity was already in doubt. Something that SEAT also dismissed last year when presenting the new SEAT Ibiza and Arona to the press: to achieve it, it will rely on electrified versions.
