Seat closes 2025 with an operating profit of only 1 million

BarcelonaThe Spanish brands Seat and Cupra, which belong to the German Volkswagen Group, saw their operating profit plummet to just one million euros in 2025, down from 633 million euros in 2024, a 99.8% decrease. This figure was revealed on Tuesday during the Volkswagen Group's results presentation, ahead of the detailed results for Seat and Cupra to be released on Thursday. The decline, as Seat already indicated in its third-quarter results presentation, is due to tariffs on the Cupra Tavascán model, which is manufactured in China, as well as higher product costs, despite an increase in sales volume. Seat and Cupra's revenue improved to 15.272 billion euros (+5.1% compared to 2024). And car sales for both brands rose last year to 657,000 units (+3.1% compared to 2014), figures that include the Audi A1 (manufactured in Martorell) and thanks to the success of Cupra models, especially the electric Born and Tavascán.

Trump's tariffs punish Volkswagen

The challenging market environment of the past year is reflected in the Volkswagen Group's results. The German automotive group earned €6.904 billion in 2025, 44.3% less than the €12.394 billion of the previous year. Total sales fell by 0.8% to €321.913 billion, while operating profit was €19.060 billion, 53.5% lower than in 2024. Nine million vehicles were sold during the year, a 0.2% decrease, and the workforce was reduced by 0.7% to 662,900 employees. In fact, the company plans to lay off up to 50,000 workers in Germany by 2030, as announced by Volkswagen Group CEO Oliver Blume in a letter to shareholders.

The company has reported that the drop in operating results is attributable to tariffs imposed by the US government, as well as expenses related to adjusting Porsche's product strategy, and currency effects. The direct and indirect cost of the US tariffs alone amounts to €5 billion, the CEO announced.

During 2025, the company implemented salary changes and a workforce restructuring that resulted in cost reductions of approximately €1 billion. They expect to increase these reductions to more than €6 billion annually starting in 2030. "The world has changed dramatically" in the last three years, Blume explained, citing "market restructuring, trade policy obstacles, and countless regulatory requirements." For these reasons, and given that the "base cost is very high," a transformation plan is being developed for the company's future.