QOTD: What's To Be Done With Seat?

Derek Kreindler
by Derek Kreindler

Like the broader debt crisis in Europe, Volkswagen’s weak link has its origins in Spain. According to Reuters, Seat has incurred losses of $1 billion since 2008, and has been profitable only once over the past decade.

Seat is hampered by the twin forces of product overlap and a Spanish economy that’s rapidly circling the drain. A former Peugeot official is quoted as asking the question on everyone’s mind

“Skoda covers the same (compact to midsize) segments and is a thoroughly reliable mass market brand. Why bother keeping Seat…”

One thing Seat does have is the youngest buyer demographic of all the VW group brands. VW is hoping that China and Russia will be lucrative markets for Seat, if Spain and the rest of Europe aren’t going to come through. The under-utilized capacity at Seat plants is at least being put to good use, building in-demand products like the Audi Q3 small crossover.

Volkswagen seems to be committed to helping Seat avoid the same fate as Opel – but many observers would rather see it die on the vine. What do you say, B&B?

Derek Kreindler
Derek Kreindler

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  • Cacon Cacon on Aug 10, 2012

    The only countries were SEAT is popular are Spain, Portugal and Mexico; non of these countries have a big enough car market to keep SEAT afloat. Right now the bet for the brand is in China and it doesn't seems (currently) to be selling well.

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    • Cacon Cacon on Aug 10, 2012

      @DAC1991 The Ibiza is SEAT best seller here in Mexico, by quite a big margin, it's very popular among the young who can afford their first new car, even if money comes from mommy and daddy. 1st Gen Leon was quite popular too, but the 2nd gen design lost many fans. I was quite close to buying it (Ibiza MY10) instead of the Leon (My09), it's a real looker, but it is too small inside (average for the car segment), since my first and only child was already announced :) (who am I kidding, I got the Leon because of the sweet 1.8 DI turbo engine/manual 6 speed tranny, hehehe)

  • Cacon Cacon on Aug 10, 2012

    The only countries were SEAT is popular are Spain, Portugal and Mexico; non of these countries have a big enough car market to keep SEAT afloat. Right now the bet for the brand is in China and it doesn't seems (currently) to be selling well.

  • Tstag Tstag on Aug 11, 2012

    I think VW is gearing up to buy Lotus. It will then rebrand the sporty models at Lotus products in an effort to boost sales in places like the UK where Seat sales are poor.

  • Djn Djn on Aug 11, 2012

    Say what you may about Skoda but the Czechs have a pretty damn good reputation for engineering.

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