Herbert Diess, CEO of the Volkswagen Group, has emphatically clarified what the future of the SEAT brand is. In recent times there has been speculation about the possible disappearance of the iconic Spanish firm in favor of the young and successful CUPRA. Will both car brands coexist? Will SEAT disappear? The top leader of the German automobile conglomerate clears up our doubts.
In recent months, a whole series of reports, coming especially from German territory, have called into question the future of the SEAT brand. Is the iconic firm that motorized an entire country facing disappearance? The commercial success that CUPRA has been reaping and its priority over SEAT to bet on the electric car has generated a multitude of headlines and debates.
Herbert Diess himself, CEO of the Volkswagen Group, has come out against this information and rumors to settle once and for all the debate on the future of SEAT. Will the brand disappear? Will it coexist with CUPRA? Will a whole series of synergies be created between them? The publication made by Diess in his official profile on the social network Linkedin allows us to answer all these questions.
Volkswagen settles the debate on the possible disappearance of SEAT
Diess has been quite clear about it: «CUPRA will not replace SEAT, but it helps it to be much more profitable ». The top leader of the German automobile group has also stressed that in times of scarcity of microchips it is logical that the manufacture of CUPRA models since they offer a higher profit margin: “In times of limited supply of semiconductors, without a doubt we prioritize the production of higher-margin CUPRA models over some entry-level SEAT models».
On the other hand, and no less important, Diess has once again underlined a no less important fact, and it is the electrification roadmap established for each of the brands. As we have previously pointed out, CUPRA has priority over SEAT when it comes to betting on the electric car. SEAT will have to focus in the coming years on low-consumption thermal engines and hybrid technology.
“Also to electrify we give priority to the higher margin CUPRA models or we are even launching new models only under this brand, economically it makes a lot of sense. Our dealers are also benefiting from this setup,” said Diess.
Volkswagen highlights the strengths of the SEAT range
The fact that SEAT continues to be the main brand and that it is stronger than ever with a range of very successful models has also been underlined. Especially the SUV line. “The main SEAT brand is stronger than ever. In recent years, we have invested more than ever in SEAT, and with Ibiza, Arona, Ateca, León, León Sportstourer and Tarraco, we have the strongest and broadest product portfolio in the world”, commented the CEO of the Volkswagen Group.
The decision of commission SEAT to manufacture in Spain the new small electric cars for CUPRA, Volkswagen and Skoda It is, in the words of Diess, very good news to help the Spanish company improve its profitability. “As Skoda is working far beyond its own brand interest for the Group, i.e. designing the new Pasast, managing India, taking on the responsibilities of the MQB A0 platform… I am looking forward to further group contributions from the SEAT team. » clarified Herbert Diess.
Source: LinkedIn