Volkswagen surprised late Thursday with a quick agreement for a major adjustment plan that will cut 50,000 jobs and leaves the future of four plants in Germany uncertain. Just a few hours earlier, the German press had reported that the automotive giant planned to withdraw Seat in 2029 to focus on Cupra. Today, the company has set 2030 as the horizon to make a definitive decision, although it has admitted that investing in the Spanish brand is increasingly difficult and has conditioned its continuity on changes in legislation and the evolution of its sales.
“In the current context, with increasingly demanding regulation, the cost of electrification and the investment needed to develop a new generation of electric models make this analysis to continue investing in the Seat brand increasingly complex,” the group stated in an official statement.
Although Volkswagen insists that “several scenarios beyond 2030 are still possible” and that “no decision has been made yet,” the group reaffirms that Seat’s continuity will depend “on how regulation, customer demand, and market conditions evolve.”
“Maintaining this flexibility is essential in an industry whose regulatory, technological, and competitive environment continues to change rapidly. Whatever scenario ultimately materializes, Seat S.A. and our dealer network will continue to support Seat customers and fulfill all commitments made to them,” the multinational concluded this Friday.
The Government has seized on these words to seek ways for the brand’s survival. “Seat is one of the great brands, and therefore I hope that in the future we will be able to talk about the development of an industrial project linked to this brand. In any case, the company itself has expressed today, because if there had been speculations… well, I believe we have years ahead to talk about possible industrial projects that incorporate the great intangible but fundamental asset of the Seat brand,” said the Minister of Industry, Jordi Hereu.
“We are in constant communication with Seat Cupra in Spain and with Volkswagen internationally, so we are now involved and building what I believe is a magnificent automotive transformation project in Spain and Europe,” said the Industry Minister at a press conference following mediation with Airbus.
The minister also recalled that some lost brands are being reborn with “magnificent industrial projects in Spain based on the recovery of old brands” and cited Ebro and Santana as examples, recovered thanks to alliances with Chinese manufacturers.
In the same vein, the President of the Generalitat of Catalonia, Salvador Illa, stated that the regional government would do “everything necessary” to preserve its industrial footprint.
VOLKSWAGEN RISES 8% ON THE STOCK MARKET
The news of the adjustment has been well received by the market, with some investors and analysts calling the drastic measures a “necessary dose of realism” for the German automotive giant.
The shares had risen 8.62% to 82.94 euros after 3:00 p.m., marking the best trading day for the German company since March 3, 2023.