Matías Carnero: "If Seat's models disappear and the second platform is not awarded, there will be thousands affected"

BarcelonaMatías Carnero (UGT) is not only the president of the Seat works council, but he is also a member of the Volkswagen Group's supervisory board, the highest control body of the German company. He speaks with ARA in the midst of the consortium's crisis: the group is expected to eliminate up to 100,000 jobs worldwide and significantly reduce its models. The historic Catalan brand Seat could be greatly affected.

There has been talk of a possible disappearance of the Seat brand for years. Is this option now a reality?

— Since the time of Herbert Diess as CEO of the Volkswagen Group, there has always been little transparency and clarity regarding the future of the Seat brand. In 2021, I began to warn that something did not add up when the future strategy of the Catalan firm was discussed. What has now been published is that there is no plan B. If no remedy is found, by the year 2029 the legendary Ibiza, Arona, and León will reach their end. For this not to happen, some of these three would need to be electrified.

But Seat still sells many cars, especially in Spain.

— Models like the Arona and the Ibiza are still at the top of the sales rankings. And they are not only popular in Spain, they are also sold in Europe. It is a pity that they are throwing away a 75-year history. From the works council, we demand that some Seat model be electrified.

In recent years, a lot has been invested to electrify Seat's plants, but not the cars.

— Mr. Diess was already saying in 2021 that the strategy was to electrify Cupra. On the other hand, the Spanish government, with the public investments it made, indicated that the intention was to electrify Seat. Now I ask myself: what were they referring to, the brand or the company? What they have done is electrify a line where only Cupra and Volkswagen are produced.

Now that we are talking about electrification, what do you think the group has done wrong during the process? The costs to manufacture the batteries for their cars make it so they cannot compete with Asian vehicles.

— We did not have the technology or the preparation of the Chinese or the Koreans. Currently, all of Europe is reaching agreements, whether through business alliances or specific pacts, with Chinese technology companies because they are the ones that have the best technology, the best times, and the best development. A few days ago, the investment by the Chinese company Gotion High-Tech for the future battery plant in Sagunto was approved and, in turn, a joint venture with a Moroccan company regarding raw materials. This should manage to lower the cost of electric car batteries. Otherwise, it will be very difficult to compete.

Could this joint venture model be repeated in other plants? It has been rumored that the transfer of a Martorell line was negotiated with Chinese companies.

— I cannot validate this information because I have never been in a meeting where this possibility has been discussed. However, I do not rule out that such mergers could occur in European multinationals. Especially for the sake of savings, since product development costs could be significantly reduced.

On the other hand, it has been said that the possible disappearance of the Seat brand would not necessarily have to lead to a staff cut at, for example, Martorell.

— I don't believe it. Given the current situation in the consortium, anyone who thinks that this problem will only affect German territory is completely mistaken. There will be repercussions, for sure.

What kind of impairment could we be talking about?

— If by 2029 the disappearance of Seat models ends up happening and the second platform is not awarded, there will be a serious employment problem. And I am not talking about hundreds of people affected, but thousands. In 2021, the unions –UGT and CCOO– already accepted salary sacrifices in order to favor the award of a second platform. And this has not been able to be fulfilled.

And has there been any progress recently with the awarding?

— No. The group is currently immersed in a structural crisis. Until it resolves the whole internal issue, which is very big, everything will be delayed.

Starting next year, he will no longer be on the Volkswagen supervisory board. Could this have any effect?

— No. I will continue to be the president of IG Metall –the largest union in Europe– and from there one can also apply pressure. It is a well-thought-out and agreed-upon decision. They need to strengthen themselves because of all the mess they have and will have in the German plants. Furthermore, on the other hand, I also said that I did not feel comfortable deciding on Seat matters and that, as the only Spaniard at the table, I would be responsible for killing a brand that I do not agree at all should disappear.

When can the final decision arrive?

— We have agreed that they will present an alternative for Seat to me before I leave the board, which will be around May. Therefore, in the coming months they will have to present a plan B.