Seat's future in doubt after boss says he can't electrify it and Cupra at same time
Cupra set to go from strength to strength
Fresh rumours are circulating regarding the future of Spanish car brand Seat, after its boss refused to reveal the brand’s electric car plans and said he can’t electrify both it and the Cupra sister brand at the same time.
At the company’s annual press conference in Barcelona this week, umbrella company Seat S.A. announced spin-off brand Cupra will begin a “product offensive” in 2024, but the Seat brand barely got a mention.
This, along with CEO Wayne Griffiths’ admission that the company was prioritising Cupra, has only increased speculation that the Seat brand’s days may be numbered.
“The future is electric; that means for our company, the future is Cupra. Cupra is for the new generation,” Griffiths said.
When asked what this means for Seat he added: “We cannot electrify both brands at once. Seat and Cupra complement each other during the transition phase. We don’t need to decide the future of Seat today.”
While it would be a bold move to kill off a brand that has seen global deliveries rise by 12 per cent during the first two months of 2023, Seat S.A. managers have made it clear they are more excited about the future of Cupra, which has seen deliveries increase by 75 per cent in the same period.
“Amidst a perfect storm of challenges, in 2022 Seat S.A. took historic decisions that will define our story in the coming years,” said Griffiths. “Prioritising Cupra, implementing a new cost reduction plan and reshaping the way we work were crucial to guarantee long-term stability for the company.”
Last year Seat S.A. saw operating profit increase by €550 million (around £486m) and turnover grow to 10.5 billion euros (£9.3bn) — the second-largest turnover in the company’s 73-year history.
As well as revealing the forthcoming Cupra Tavascan SUV in the coming weeks, Cupra is set to launch a handful of other electric models in the next few years as it transitions from a performance off-shoot to a standalone electric brand.
It’s Seat S.A.’s ambition to make the Cupra brand one of the Top 100 Best Global Brands by 2030, and the new Tavascan, along with the upcoming Terramar and UrbanRebel models are part of its growth plan.
Seat S.A. also revealed major investment in electrification, with a total of three billion euros being ploughed into factories in Martorell and Pamplona, both of which lie in northern Spain.
Not only will those factories receive more funding to increase their output, but Martorell is expected to “lead the Volkswagen Group’s cluster for the development of the family of cars that will democratise sustainable urban mobility.” In short, the Martorell factory will produce vehicles for brands across the Volkswagen Group by 2025.
But there has been no announcement surrounding Seat, which has been left with an ageing range of models.
The company started life in the 1950s, when it was formed to make Fiat models under licence. It wasn’t until the 1970s that the brand launched its own self-developed vehicle, the 1200 Sport.
Now, though, Seat is one of the ‘big four’ brands in the Volkswagen Group, offering a sporty alternative to the more upmarket Volkswagen and Audi marques, as well as more value-orientated Skoda.
The company’s most popular products include the Leon hatchback and the Ateca SUV, as well as the smaller Ibiza and Arona models.
Cupra, meanwhile, was formerly the name given to Seat’s performance models, most notably the Leon Cupra hot hatchback. In 2018, however, Cupra became a standalone brand, albeit one that predominantly built high-performance versions of existing Seat models. Now, though, the company is focusing on electric power.
Despite the two brands leading a “financial turnaround” for the umbrella company in 2022, Seat S.A. bosses are clearly set on growing Cupra ahead of Seat.
“We are at the start of a crucial year in Seat S.A.’s history,” said Griffiths. “We know the future is electric and we have a clear vision and motivated team determined to make this transition.
“If 2022 was the kick-off of our transformation, 2023 will be the year of its acceleration. We built Martorell 30 years ago to create a new era of growth for Seat. Now we are in a second era: the next big milestone in the history of this company.”
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