Seat claims itself within the Volkswagen group, but does not clarify its future

BarcelonaThe cuts at the Volkswagen group have already been approved by the supervisory board. However, it is not clear what will happen to the group's Spanish brand, Seat. While the German press reported on Thursday that the intention is for the Seat brand to disappear by 2029 at the latest, this Friday the Martorell-based company claimed its role within the Volkswagen group, but without clarifying in any case what its future will be.

This same Friday, the Martorell brand issued a statement in which it assured that "all scenarios are possible." In fact, it did not clarify what the future of Seat is as an automotive brand. "The Seat brand remains an important part of Seat SA and has a clear product roadmap for the coming years." In fact, although the brand has not released a new model in six years, the statement says that "the company will continue with the product launches and updates already planned, including the introduction of mild hybrid versions of the Ibiza and Arona scheduled for 2027".

But the key phrase, which leaves the future of the Seat brand up in the air, is: "However, beyond the current product cycle, the future of the Seat brand continues to be analyzed." And it adds: "In the current context, with increasingly demanding regulation, the cost of electrification and the investment required to develop a new generation of electric models make this analysis to continue investing in the Seat brand increasingly complex."

The statement from the Martorell brand does not close the door at all to a disappearance of Seat cars. "Therefore, various scenarios beyond 2030 remain possible," the document says, and adds that "depending on how regulation, customer demand, and market conditions evolve, the continuity of the Seat brand will be assessed." Mind you, it states that "no decision has been made yet." And an addendum, so as not to worry all those who have a car from the iconic and historic Spanish brand: "Whatever scenario finally materializes, from Seat SA and our dealership network we will continue to support Seat customers and fulfill all commitments made to them."

Brand and industry

Seat, however, clearly distinguishes between the brand side and the industrial side: that is, the Martorell plant, the third most productive in the Volkswagen group in Europe. In fact, in its statement, the company indicates that "it is important to distinguish between the future evolution of the Seat brand and the future of Seat SA, the company behind Seat and Cupra", and adds that "Seat SA has a solid future". "We are transforming the company into an automotive powerhouse within the Volkswagen Group, combining two established brands, industrial capacity, and the necessary flexibility to adapt to changing customer demand and market conditions", the document says.

"This transformation involves strengthening the role of Seat SA [the company, not the brand] within the Volkswagen Group, while Cupra remains the company's main growth engine", the statement says. And to calm the unions, it assures: "As Seat SA expands its industrial responsibilities within the Group, we expect employment to increase in the coming years".

Neither has the top executive of the Volkswagen group, Oliver Blume, clarified what the future of Seat will be. In a statement, Blume has already said that "Seat SA has an important role to play in the future of the Volkswagen Group" and has highlighted its capacity for transformation, especially industrial at the Martorell plant, and "the unstoppable growth of Cupra". And regarding the future, Blume does not say what it will be. "We must remain flexible and adapt our brand and product strategies to regulation, market conditions, and what customers demand", he states.

Neither does the top executive of Seat, Markus Haupt, clarify the future. "Seat SA –he says– is starting a new stage from a solid position". And he boasts by assuring: "We are becoming an automotive powerhouse, with an industrial role within the Volkswagen Group and with Cupra reaching its full potential". For Haupt, the company is experiencing a historic transformation "with Cupra as a key driver of growth and profitability in the future". And he assures: "We are building a solid future for Seat SA and for Martorell".

In fact, not even the president of the Seat works council, Matías Carnero (UGT), who is also a member of the Volkswagen Group's supervisory board, clarifies the future of the Catalan brand. "For us, the priority has always been clear: to ensure the future of the company and quality employment for future generations," he said, but he did not refer to the brand, but rather to the Spanish company. "Seat SA is not a single brand. It is a company that has Seat and Cupra, a strategic industrial footprint and an increasingly important role within the Volkswagen Group," he indicated. "Transformation is never easy," added Carnero, but it does bring investment, he affirmed.

Political support for the brand

The President of the Generalitat of Catalonia, Salvador Illa, explained this Friday that he is in contact with the top officials of the Volkswagen group and Seat in Catalonia and that the Government will do "whatever it takes" to preserve the company's jobs in Catalonia.

He stated this during a media appearance during his institutional trip to Ukraine, after the Volkswagen group's supervisory board unanimously approved the Future Plan 2030 on Thursday, a transformation program that includes an adjustment of the global workforce capacity of approximately 50,000 jobs. According to reports published in the German press, the adjustment plan could also lead to the disappearance of the Seat brand, although this would not affect the continuity of the Martorell factory.

In this regard, Illa recalled that this industry and its jobs are "essential" to the Catalan economy and that the Government will do everything possible to preserve them. On Thursday, following reports about the possible disappearance of the Catalan brand, the Seat works council requested the involvement of the Catalan and Spanish administrations to save it.

For his part, the Minister of Enterprise and Labour, Miquel Sàmper, stressed this Friday that "Seat represents much more than a brand" and reaffirmed his "commitment to the automotive industry, its workers, and the industrial ecosystem that surrounds it." In a message on the X network, Minister Sàmper assured that the Government will follow "closely all decisions that affect the company." "Seat represents much more than a brand: it is industry, employment, innovation, and an essential part of Catalonia's economic history," he remarked, in reference to the alleged intention of the Volkswagen group to eliminate the Seat brand starting in 2029.

The Minister of Industry, Jordi Hereu, also defended this Friday the strategic value of Seat as one of the great brands of the Spanish industry and showed his confidence that new industrial projects linked to the brand could be developed in the future. "It is evident that Seat is a great brand and I want to remind you that in this country industrial projects are now being born based on the recovery of brands," said Hereu.

The general secretary of UGT, Pepe Álvarez, has bet on maintaining the Seat brand and has admitted that "they are worried" about its possible disappearance following the Volkswagen group's restructuring plan. For Álvarez, it would be a commercial "mistake", but "above all for the company's productive capacity", and he recalled that "it has been being considered for years now". In this regard, he has asked the administrations to "demand" responsibility from the automotive group regarding its policies, taking into account the aid they have received in recent years. He said this during an event in Ripoll.