SEAT brand could be phased out after 2030

SEAT S.A. is considering a gradual phase-out of the SEAT brand beyond 2030 as tougher regulation and the cost of electrification make investment in a new generation of models increasingly challenging.

The company said no final decision has been taken and several scenarios remain possible, depending on future regulation, customer demand and market conditions.

SEAT’s existing product roadmap will continue as planned, including the introduction of mild-hybrid versions of the Ibiza and Arona in 2027.

However, the direction of the brand beyond the current product cycle remains under assessment.

The company stressed that the potential future phase-out of the SEAT brand is separate from the future of SEAT S.A., which also owns CUPRA and is expanding its industrial responsibilities within the Volkswagen Group.

Oliver Blume, CEO of Volkswagen Group, said: “SEAT S.A. has an important role to play in the future of the Volkswagen Group.

“The company has demonstrated its ability to transform, with a strong industrial base in Martorell and the remarkable development of CUPRA.

“I am proud of what the SEAT and CUPRA team has achieved over the past few years, and it gives me great confidence in what lies ahead.

“We are committed to building on these strengths and creating the conditions for SEAT S.A. and CUPRA to continue growing and contributing to the success of the Group.

“At the same time, we need to remain flexible and adapt our brand and product strategies to regulation, market conditions and what our customers demand.”

CUPRA will remain a key growth driver for SEAT S.A., with the brand targeting a 3% European market share and planning to enter the Middle East in the third quarter of 2027.

Opportunities in other international markets are also being assessed, including a longer-term ambition to enter the US.

Since its launch in 2018, CUPRA has delivered more than one million vehicles and launched eight models in eight years.

SEAT S.A. is also leading the industrialisation of the MEB21 platform and production of the Electric Urban Car Family at Martorell.

Its transformation forms part of the €10bn investment announced by Volkswagen Group, SEAT S.A. and Future: Fast Forward partners in 2022 to accelerate electrification in Spain.

The company said it will continue seeking an additional platform for Martorell and expects employment to increase as its industrial responsibilities expand.

Markus Haupt, CEO of SEAT & CUPRA, said: “SEAT S.A. is entering a new chapter from a position of strength.

“We are becoming an automotive powerhouse, with a growing industrial role within the Volkswagen Group and CUPRA reaching its full potential.

“This is a story of transformation, with CUPRA as a key driver of our future growth and profitability.

“At the same time, our industrial responsibilities are growing and, with them, employment.

“We are building a strong future for SEAT S.A. and for Martorell.”

Matías Carnero, chairman of the SEAT S.A. Works Council and member of the Supervisory Board of Volkswagen AG, said: “For us, the priority has always been clear: securing the future of the company and quality employment for the next generations.

“SEAT S.A. is not one brand. It is a company with SEAT and CUPRA, a strategic industrial footprint and an increasingly important role within the Volkswagen Group.

“Transformation is never easy, but if it brings investment, more responsibility and growth to Martorell, it can also create new opportunities for our people.

“We will continue working together to ensure that SEAT S.A. has a strong industrial and employment future.”