Record year for Seat with more sales than ever

MartorellSeat closed 2024 as its best year ever, with "solid sales and record financial results," Seat and Cupra president Wayne Griffiths explained this Thursday. The results, according to Griffiths, are not a one-hit wonder, but rather the result of five years of work in which the Cupra brand "has been the engine of profitability and success."

The company's vice president of finance and technology, Patrick Mayer, framed these record figures within a year he described as "one of resilience," especially the second half, during which threats loomed over the company. Seat closed with an operating profit of €633 million, 1% more than the previous year. However, net profit stood at €522 million, 4.7% less than the previous year, due to the lower application of tax credits, offsetting losses from previous years.

The company sold 612,000 vehicles, 17% of which were electrified, leading to a record turnover of €14.53 billion, 1.4% more than the previous year. The Cupra brand, created in 2018, already contributed 48% of sales. Of this turnover, 90% came from Europe (15% in Spain) and the other 10% from the rest of the world. Therefore, the company maintains its goal of becoming global and entering the United States market before the end of this decade, despite the threat of the trade war launched by Donald Trump. In this regard, Griffiths noted that potential tariffs change daily and that, in any case, Cupra's entry into this market will be through a manufacturer in the region.

In fact, the brand's top executive has explained that there are several possibilities for how to enter the US. Initially, electric-only models were considered, but depending on how Trump's environmental and tariff policies evolve, plans could change and adapt.

Tariffs in China

"This is a crucial moment for the automotive sector, immersed in its most profound transformation," Mayer emphasized in his presentation. This transformation has already had a cost for the company, especially due to The impact of tariffs on electric cars made in China, which affects the Cupra Tavascan. Griffiths has stated that he has presented this problem in Brussels and has seen that "there is a will to find a solution," although he acknowledged that, for now, none has been found. "This has a significant financial impact and we cannot continue like this," he warned, because "it puts the Cupra brand and the company itself at risk."

If the problem is not resolved, 1,500 jobs are at stake, Griffiths recently stated. This Thursday, he indicated that he expects "a mechanism" to resolve the problem from Brussels quickly and, in this regard, said it should arrive this first quarter. According to the Seat president, the tariffs on Tavascan have already meant that Seat's profitability per car sold, at 4.4%, has not improved this year, and if it is not resolved, it will fall in the near future. Furthermore, to comply with CO₂ emissions requirements, production of combustion cars will have to be reduced.

The president of Seat and Cupra expressed his opposition to the tariff war and explained that "protectionism is not the solution." He also called on Europe to show courage in addressing electrification. "For us, [electrification] is not another goal; it is the goal. We have done our homework," he emphasized, demanding "the same level of commitment from the leaders of Spain and Europe." "We all have a responsibility to lead this country and that continent into the future," said Griffiths, who has openly called for direct tax aid for the purchase of electric cars: "We need clear and convincing incentives."

He also called for improved charging infrastructure and information campaigns. Regarding electric cars, he said: "If Europe is slow, Spain will be worse off," with only a 5 percent market share for electric cars. The executive reiterated his warning, recalling that the automotive sector is losing weight in Spain's GDP, despite the fact that the state is "the second-largest car producer in Europe and the ninth-largest in the world."

Extra payout

Despite the storm clouds hanging over Seat's workforce of around 15,000 due to tariffs and the trade war, the strong results for 2024 will translate into a record bonus payment (for the second consecutive year) for employees of €1,800. In total, over the three years of the current agreement, each employee has received €5,159 in this bonus payment (€1,559 in 2022, €1,800 in 2023, and €1,800 in 2024).