The German group will abandon the Seat brand and focus on Cupra, which is more profitable. The move comes as Volkswagen plans to cut up to 100,000 jobs and halve its model range.
A page in European automotive history is about to turn. Volkswagen plans to end the Seat brand by the end of 2029 at the latest, reveals the German business magazine “WirtschaftsWoche”, which is based on the manufacturer’s new restructuring plan.
The decision is part of an austerity program of historic proportions. On Thursday, Volkswagen’s supervisory board approved its “2030 Future Plan”, which brings to 100,000 the number of job cuts announced or planned in five years, or around 15% of the group’s global workforce, according to AFP.
Volkswagen estimates in particular that it has excess production capacity of around 500,000 cars in Europe. The manufacturer also intends to halve the number of models offered by 2035 and significantly reduce the complexity of its catalog. Several German factories are threatened in the longer term, even if no closure has yet been decided.
Cupra got the better of Seat
For Seat, the threat had already been perceptible for several years. The Volkswagen group has gradually favored Cupra, the former sports version of Seat which became an independent brand in 2018. Positioned more upscale and sold more expensively, its models offer better margins.
Cupra now occupies a large part of the segments formerly covered by Seat. As for popular small cars, historic territory for the Spanish brand with models like the Ibiza, Volkswagen can also count on Skoda.
The recent developments of the Ibiza and Arona, as well as the Leon, could thus constitute the last major new products marketed under the Seat logo.
More than forty years with Volkswagen
Volkswagen entered the capital of the Spanish manufacturer in 1983, before taking control in 1986. Seat then experienced strong expansion in the 1990s and established itself as one of the important general brands on the European market, recalls the specialized site Caradisiac.
Its disappearance now illustrates the upheavals that Volkswagen is facing. The group cites increased global competition, changing demand and technological transformation of the automotive industry to justify its restructuring.
The cure will not stop at Seat. Volkswagen intends to fundamentally review its organization, its investments and its international presence in order to increase its operating margin to 9% in 2030, compared to barely 3% in 2025.
However, the disappearance of Seat has not yet been officially announced by Volkswagen. According to “WirtschaftsWoche”, the decision is included in the group’s internal plan and the brand should be gradually dismantled by the end of 2029.
