the future of SEAT it is safe, for the moment, despite not being profitable and positioning itself alongside the meteoric rise of its sister brand CUPRA. This has been declared by the leadership of the Volkswagen Groupwhich maintains that the Spanish brand is safe, at least, until 2028 or 2029.
The president of the house of Martorell and CEO of Volkswagen, Thomas Schaferhe told Coach: “We are not killing SEAT. We just have to decide what his future will be. We are still working on a plan for SEAT, which is good until 2028 or 2029. It is an entry brand for young customers. It really works in Europe, particularly in Spain, the United Kingdom and Austria”. However, Schäfer also expresses his wish that SEAT does not come into conflict with other brands of the German conglomerate, such as Škoda.
Despite his statements, the manager also stated that “CUPRA is the future of SEAT. CUPRA is the reinvention of SEAT for the future. CUPRA will move much faster towards electrification”. In fact, the latter has promised to offer a series of 100% electric models in the coming years, while SEAT must wait for the price of batteries to drop to start electrifying its more affordable range. In fact, SEAT is limited to a trio of plug-in hybrids: León and León Sportstourer, and the Tarraco.
CUPRA has been successful in terms of profitability, unlike SEAT, which is currently not as successful and has seen a significant drop in sales year-on-year in recent months, partly due to a shortage of semiconductors. Still, Schäfer made it clear that CUPRA “is not a volume participant”since it offers products with a higher profit margin than the more conventional SEATs and is aimed at a “young and rebellious public”.
If you look closely, the problem with SEAT is that the Volkswagen Group already has a well-established and hugely successful volume brand based on the spirit “Simply Clever”: Skoda. Before, the latter was responsible for filling the spectrum low cost of the group, while the sportier side that used to distinguish the models of the Spanish manufacturer is satisfied with the CUPRA brand, leaving as the most “sporty” options the FR equipment packages.
According to Schafer, one possible idea for the future is to turn SEAT into a mobility brandsomething that has already been hinted at by prototypes such as the Minimó quadricycle and the e scooterMo 125. Such a move would make SEAT the equivalent within the Volkswagen Group as Mobilize, of the Renault Group. Even so, until Europe bans combustion engine vehicles, the Spanish firm will continue to offer its wide range of products, ranging from the Ibiza as an entry point (the Mii no longer exists), to the seven-seater Tarraco.
Source: Coach
