Volkswagen may end the Seat brand as early as 2029, according to the German newspaper WirtschaftsWoche and the Spanish daily Expansión. The decision, which has not yet been officially confirmed, aims to strengthen the German carmaker's competitiveness and efficiency, allowing the group to focus on the Cupra brand. Sources from Seat in Spain contacted by Expansión stated that no final decision has been made so far, but the Spanish brand is no longer part of the Volkswagen Group's strategic vision for 2030.
The Seat brand will cease production by the end of 2029 at the latest, a measure that demonstrates the German multinational's financial difficulties, which owns Autoeuropa in Palmela. According to the same report, the decision approved by management will be presented to the company's supervisory board at a meeting scheduled for this Friday, where cost reduction plans that could lead to the closure of four factories in Germany will also be discussed.
The German group is implementing a deep restructuring plan, which includes production cuts and a 25% reduction in its capacity. An internal note from the carmaker confirmed that around 100,000 layoffs are being planned worldwide, which could surpass the largest layoffs in corporate history, such as those by General Motors and IBM in the 90s. The company is going through a turbulent period marked by growing Chinese competition and profit decline.
In Portugal, Volkswagen intends to maintain the current plan to produce the electric model ID.Every1 at Autoeuropa, in Palmela, despite the global restructuring process.
