The trade war cuts Seat's profit by 90%.

BarcelonaThe trade war is having a direct impact on the results of European car manufacturers, and Seat has been no exception. In the first six months of the year, the Martorell-based company suffered a 90.6% drop in operating profit, to €38 million, due to market uncertainty and tariffs imposed by the United States government. In fact, given this situation, the company has postponed its operations. sine die the leap to the United States, initially planned for 2030.

Finally, Seat closed the first half of this year with revenues of 7.6 billion euros, 2% less than in the same period in 2024.

The vice president of sales said that the company works in a "challenging environment" caused by changes in sales patterns in the sector, EU tariffs on the Cupra Tavascan model (the car is manufactured in China), cost increases due to the rise in the price of materials and the intensification of competition in the group's main markets.

However, the group's interim CEO, Markus Haupt, has assured that he maintains a "constructive dialogue with the European Commission" regarding the tariffs on the vehicles that the group manufactures in Asia. Haupt expressed confidence in a message on LinkedIn that an agreement with Brussels will be reached in the near future.

Haupt temporarily fills the void left by Wayne Griffiths, who Seat unexpectedly left last March to "take on new personal challenges." Since then, Haupt has led the company while awaiting the appointment of a new CEO. The jump to the US has caused Seat to reconsider its entry into the US market, announced for 2030. Schuwirth has assured that it is not ruled out, but "only" postponed, but the company has not set an alternative date beyond 2030.

The commitment to Cupra remains

Furthermore, among the difficulties of recent months is the fact that the company, a subsidiary of the German Volkswagen Group, has had to temporarily reduce production at its Martorell factory as part of the transformation process of Volkswagen plants in order to be able to switch to producing electric cars starting next year. Seat thus anticipates that "global market conditions will remain complex" for the remainder of the year, which will require the company to be "agile and resilient."

By brand, Cupra led sales with the delivery of 167,600 vehicles between January and June across all markets, an increase of 33.4% compared to the previous year. Meanwhile, sales of Seat-branded cars fell 21.4% to 135,000, something expected given the company's commitment to Cupra over its traditional brand.

In this regard, Seat's vice president of finance, Patrick Andreas Mayer, has confirmed that the manufacturer's "long-term strategy" is based on "electrification," "transformation," and "the growth of Cupra."