Volkswagen to Discontinue SEAT Brand … Spanish Government Enters Negotiations After Sudden Blow

*This content was translated by AI.

On September 4, the Volkswagen Group officially announced that it is difficult to ensure the growth, profitability, and market competitiveness of the SEAT brand. As a result, the future of the SEAT brand after 2030 has become uncertain. The final official announcement is now imminent.

This announcement is part of Volkswagen Group's major restructuring plan, which includes cutting up to 100,000 jobs in Germany and closing four factories. SEAT will continue production of models currently under development, including mild hybrid versions of the Ibiza small car and Arona compact SUV scheduled for launch in 2027. However, the issue lies beyond the end of the current model production cycle.

According to market research firm Institutional Investor Dataforce, SEAT sold approximately 128,000 units in Europe from January to July 2026, while Cupra sold about 177,000 units. In 2025 alone, Cupra's sales in Europe reached around 300,000 units, and SEAT's sales were approximately 215,000 units.

SEAT produces various models including the Ibiza, Arona, and Leon at its Martorell factory near Barcelona, while the Ateca compact SUV is manufactured in the Czech Republic. According to data released by SEAT, approximately 12,000 employees work at the Martorell plant, which has an annual production capacity exceeding 500,000 units. Based on the 2025 annual report, the factory produced 473,047 vehicles that year, of which 225,282 were SEAT-branded cars. The plant's peak production record was 500,005 units in 2019. Once Volkswagen officially announces the closure of the SEAT brand, avoiding significant impact will be difficult.

In response, on the 7th, major Spanish unions CCOO and UGT issued a joint statement saying it is practically impossible to fully compensate for production reductions caused by discontinuing SEAT models with increased Cupra output. The Catalan regional government also stepped in. On the 8th, Salvador Illa, head of the Catalan autonomous government, stated that he is negotiating with Volkswagen Group to preserve jobs at the factory. In an interview, Illa said, "Our top priority is to safeguard Catalonia's automotive development and production capabilities, protect employment, and maintain the SEAT brand." Last week, ERC, a centrist party in Catalonia, submitted a similar demand letter to Volkswagen Group.

<© STARNEWS. All rights reserved. No reproduction or redistribution allowed.>

*This content was translated by AI.