The future of Seat is safe for the time being, despite being unprofitable and positioned alongside its sibling brand Cupra’s meteoric rise. Seat chairman and Volkswagen CEO Thomas Schafer told Autocar: “We are not killing Seat. We just need to decide on its future.”
The VW Group-owned Spanish brand enjoyed much success with models such as the Seat Ateca and Seat Leon but has been struggling in recent years, while the more-expensive, higher-margin Cupra line-up has been a triumph.
Seat’s European sales year-on-year dropped 45% in July and 42% in August, as it appears last in the queue at the VW Group for semiconductor supply. It has no electric cars on sale, a stark contrast to the rest of the group.
While Schafer insisted Seat will continue, he also commented: “Cupra is the future of Seat. Cupra is the reinvention of Seat going forward. Cupra will move much faster into electrification.
“We are still working on a plan for Seat, It is fine until 2028 or 2029. It’s an entry-level brand for young customers. It really plays to Europe, particularly Spain, UK and Austria,” he added.
One idea for its future mentioned by Schafer is as a mobility brand. This would ensure Seat neatly fitted into the broader VW Group line-up while not conflicting with other marques, namely Skoda.
Seat is already testing the water in the mobility space, having showcased its Renault Twizy-esque Minimo, plus a number of electric scooters such as the Mo 125.
Meanwhile Cupra “is not a volume player” said Schafer, but has “a sharp positioning” within the group appealing to a more “rebellious, young audience”.