Volkswagen Group’s approval of its Future Plan 2030 has fuelled uncertainty for Seat dealers after reports claimed the Spanish car brand could be phased out by the end of 2029.
Since it was bought by Volkswagen Group in 1986, the brand has struggled to deliver sustainable growth in sales and profitability with the manufacturer reported in recent years to be mulling ditching the marque by the end of the decade.
It is unclear what this could mean for Seat’s dealer network, however many franchisees also represent the Cupra franchise in the same location so impact could be mitigated
German business publication WirtschaftsWoche reports that Volkswagen intends to focus on its more premium Cupra brand although Volkswagen’s official announcement on its Future Plan 2030 strategy does not mention Seat, Cupra or the closure of any individual brand.
Martorell plant expected to remain
The report said Volkswagen does not intend to close Seat or its Martorell manufacturing plant near Barcelona, which employs around 12,000 people.
Instead, the group is reportedly considering ending the Seat vehicle brand while retaining its Spanish operations to support Cupra and wider group production.
Concerns about Seat’s long-term future have persisted since Cupra was established as a standalone brand in 2018, despite the two marques occupying different price points and serving different customer groups.
Last October, Seat and Cupra chief executive Markus Haupt, talking to Automotive Management’s sister brand CAR spoke frankly about the cost-driven limitations for Seat, whose development will focus on refreshing its ICE models before a business case for an EV was feasible.
“Today we don’t have a solution to offer a Seat on an electric platform where we can earn money,” he said. “There will be a moment when an electric Seat will be feasible, but not right now. Until then, we keep refreshing our Seat models and keep them attractive for our customers.”
Speaking about Seat and Cupra, he said: “We have two babies, and we cannot say that one is nicer than the other, but we are exploring and will always be exploring the future of Seat.”
Volkswagen to halve model portfolio
Volkswagen’s confirmed Future Plan 2030 will reduce the group’s model portfolio by around 50% by 2035 and cut the complexity of its model and variant offering by approximately 75%.
The manufacturer said concentrating investment on fewer vehicles would produce higher volumes per model, reduce costs and create stronger economies of scale.
This substantial contraction provides the context for the Seat report, although Volkswagen has not confirmed which models or brands could be affected.
Restructure puts 50,000 jobs at risk
The group said it expects to invest €135 billion in capital expenditure and research and development between 2027 and 2031 to make its brands more attractive, stronger and more competitive.
Oliver Blume, chief executive of Volkswagen Group, said: “The supervisory board has unanimously approved the executive board’s Future Plan. This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide.”
Volkswagen said approximately 50,000 jobs, including management roles, would need to go from its global workforce as it adjusts capacity to weaker demand, technological change and intensifying international competition.
A new production plan for its European factories is due to be developed by the end of June 2027 as European capacity at its four German factories currently exceeds demand by more than 500,000 cars.
Volkswagen said implementation of the 12-part transformation programme would begin immediately.
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