Contrary to some media reports born from a misinterpretation of remarks by Thomas Schäfer, the CEO and Chairman of the Volkswagen Group’s Seat-Cupra alliance, statements suggested that Seat might disappear. In reality, the Spanish brand continues, and its strategy centers on strengthening a shared front with Cupra and SeatMO to accelerate advanced electromobility across markets. The intent was to emphasize global potential rather than regional focus.
The plan envisions continued global expansion, with Seat as a global project within the Volkswagen Group. Cupra positions itself as the fastest-growing arm, supporting Seat while pursuing its own identity. Schäfer later clarified that his comments were misinterpreted and that he did not intend to signal Seat’s demise.
In Munich, the absence of Seat as a stand-alone brand—and the competition from other brands, including Korean and Japanese makers and several Stellantis labels—contributed to confusion after Schäfer’s remarks. The episode sparked much speculation on social media, fueling a wave of misinformation that did not help anyone.
Transformation as a company
El Periódico, part of the Prensa Ibérica group, reported in 2021 that Seat would persist by transforming into a reference in new mobility while continuing to sell cars in a horizon that includes the end of internal combustion engines around 2035. From Seat’s perspective, the company stressed resilience and strength in the face of industry challenges, though no formal confirmation of a pivot was issued at the time.
Like many others, Seat has faced post-crisis pressures from the pandemic, rising semiconductor costs, transportation logistics, and raw materials. Yet the brand reported an 18% year-to-date sales increase, approaching 199,000 vehicles. Executives asserted that their product range would be the most comprehensive in history.
Seat recently announced an extension of the lifecycle for the Ibiza and Arona models. Initially slated to end in 2028, discussions within the Volkswagen Group leadership prompted a renewed approach that would continue offering energy-efficient powertrain options while meeting the long-term goal of electrification by 2035. The intent was to align model updates with the broader strategic timeline rather than prematurely sunset key models.
The plan also included updating the Ibiza, Arona, and Leon to incorporate plug-in hybrids as the brand moves toward more electrified solutions while maintaining urban mobility needs. The approach signals a gradual shift toward electrified offerings without abandoning the core strengths of established models.
As Seat’s leadership noted, the company will pursue a differentiated role for Seat and Cupra within the group. The aim is to shape the future of the Seat brand by exploring mobility options that resonate with younger consumers, including mobility sharing, subscription services, and micromobility solutions.
Micromobility
With the end of life for Arona, Leon, and Ibiza projected around 2030–2031, Seat’s business scope would evolve toward mobility services. SeatMO already offers electric personal mobility devices for sale and rental and is cautiously expanding into small watercraft. The strategy envisions building a four-wheeled urban product, with an electric quad designated S04 in development and planned for production pending Volkswagen Group approval. The quad is designed to resemble a car and targets a price range of 10,000–15,000 euros, a landscape where traditional cars priced below 25,000 euros are expected to fade as electrification advances. This mobility segment is viewed as strategic within the broader VW Group portfolio.
Australia, United States, and China
The misinterpretation of Schäfer’s remarks did not alter Seat’s global trajectory. Cupra has begun operations in Australia and has signaled plans to enter the United States market. Executives suggested leveraging production locations in Munich or within VW Group plants in the United States for U.S. entry. The United States market is presented as a significant challenge requiring a capable portfolio and local manufacturing considerations to achieve profitability.
Seat’s role within the Volkswagen Group continues, with production plans tied to new models and regional manufacturing capabilities. The brand has explored creating initial models at new facilities, including a plant in China, to establish a foothold as Asian brands expand their influence in Europe. The development plan also includes a second-generation model and a new platform at the Martorell facility, with the Tavascan model potentially sold in China under the Volkswagen banner. It is indicated that Seat will not manufacture the Tavascan in Martorell, as Cupra is positioned to lead its global rollout.
Attribution: developments reported by Seat and Cupra leadership and industry observers; commentary reflects market context and strategic direction from 2021 through 2024.