Editorial | The future of the Seat factory

The Seat plant in Martorell It is going to take a turn that will mean the prioritization of the Cupra brand and electric vehicles. At the moment, it is not known what the future plans are for the general brand Seat, created 70 years ago. Seat chairman Wayne Griffiths recently pointed out that, since the current share of sales of electric vehicles (plug-in hybrids and pure electric) is still low, it has been decided to focus on Cupra the offer of 100% electric vehicles. For its part, Seat will focus on plug-in hybrids and combustion models, in the latter case, while regulations allow it. Although there are still few electric vehicles being sold, the large car companies design their future plans foreseeing that in 2030 they will account for more than half of the turnover.

Cupra is a brand on the rise, which has tripled sales in three years. All this could end up relegating Seat, something that worries the unions. In addition, it must be considered that the Cupra models offer a higher margin per unit than those of Seat, a brand that brings benefits thanks to the large volume of sales. In this sense, the words of the CEO of the Volkswagen Group, Herbert Diess, to El PERIÓDICO are revealing: «The plan is to maintain margins, more important than volumes. We are not going to fight over the last car sold. As for the future of the Seat brand, Diess reflected: “Will not go away. I’m looking for his place within the group ”. The president of the works council, Matías Carnero, He pointed out that the ideal would be to have a line in which both Seat and Cupra or other brands could produce. Carnero demanded investments and new models from Volkswagen.

The fact that Volkswagen’s strategy involves turning Cupra into a benchmark electric car brand and leaving Seat in a residual position makes it necessary to seek a new fit for the mythical brand in the market (with lower-cost products, for example). It is a challenge for the Catalan factory, which must adapt to not to be left behind in the transformation of the automotive industry.

Either way, the prospects are exciting. Seat has just opened a battery research and development center in Martorell, in which it has invested more than 7 million euros. But much more relevant is that Brussels has approved this month the strategic project for the recovery and economic transformation (Perte) of the electric and connected car presented by the Spanish Government. The project involves aid of 3,000 million euros through the Ministry of Industry, plus 1,300 million from other ministries. Seat is in the first line of departure to receive the multimillion-dollar injection from the European Union, which, if confirmed, will be a strong stimulus to the production of electric cars in Martorell -where, according to the forecast, they will be manufactured the year that 440,000 units are coming, despite the setback of the shortage of microchips- and in Landaben (Navarra).

Volkswagen’s commitment to electrification and to give a new impetus to its factories in Spain must have the support of both the central administration and the Generalitat de Catalunya, which, on the other hand, have always shown their strong institutional support for Seat . The authorities must also ensure that the great opportunity represented by European funds is not wasted.

Reference-www.elperiodico.com

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