Following rumors of a possible disappearance of SEAT in 2029 and the unanimous approval of the Volkswagen Group’s restructuring plan, we already know that the sister brand of CUPRA is safe, because it does not appear in the plan explicitly.
The same chief executive of the Volkswagen Group, Oliver Blume, has wanted to make clear that SEAT SA (the company that brings together SEAT and CUPRA) has “an important role” and that it has a clear product roadmap for the coming years. However, the company has left a door open to doubt regarding SEAT.
Blume believes that SEAT has a “solid future,” with the introduction of mild-hybrid versions of the Ibiza and Arona planned for 2027
For many years it has been speculated that SEAT could disappear to make way for CUPRA, a brand that for some time now has proven more profitable for the German group. The restructuring plan that was just approved in Germany includes the departure of around 50,000 employees worldwide and, among other measures, will drastically reduce the number of models (by 50% to be exact).
The Group has acknowledged that it has an overproduction of 500,000 units just in Europe, which is equivalent to the output of a plant like SEAT Martorell. In this scenario, Blume has stated that “SEAT SA has an important role to play in the future of the Volkswagen Group” but he alluded to the unstoppable growth of CUPRA, which remains the brand driving the company forward.
At this point it is important to distinguish between the future evolution of the SEAT brand and the future of SEAT SA, the company behind SEAT and CUPRA. This positive declaration, intended not to unsettle investors, comes with a caveat: SEAT has “a solid future,” with the introduction of mild-hybrid versions of the Ibiza and Arona planned for 2027. However, “beyond the current product cycle, the future of the SEAT brand remains under review”.
Blume has also hinted that SEAT’s profitability is not meeting expectations, but he insists that no decision has been made yet: “In the current context, with increasingly stringent regulations, the cost of electrification and the investment required to develop a new generation of electric models, make this analysis to continue investing in the SEAT brand increasingly complex.”
For the moment the future of Martorell is secured, and the consortium has promised to ensure an additional platform for the plant.
Images | Volkswagen Group
