AN iconic car brand’s future has been “thrown into doubt” with the firm said to be “devoid” of new models in the coming years.
Plans for new electric models at SEAT are stalling and a failure to make costs add up for a new small electric car leaving the brand.
Fears are growing over the future of SEAT[/caption]
The Spanish carmaker’s R&D boss, Werner Tietz, confirmed that SEAT won’t be launching any new internal combustion models.
However, the popular Ibiza and Arona will undergo significant updates to keep them relevant until the end of the decade, reports Auto Express.
This leaves SEAT’s future tied to the success or failure of its small electric car plans.
And so far the brand has struggled to make it work financially.
Wayne Griffiths, who stepped down as SEAT and Cupra CEO in late March, told Auto Express that the brand needs a complete overhaul to return to its roots.
Griffiths wants a return as the core entry point to the Volkswagen Group and appealing to younger buyers with “affordable electro-mobility.”
But he added that affordability doesn’t just apply to customers – it needs to be financially viable for SEAT too.
“That’s the catch 22 at the moment – making small electric cars profitable,” he said.
“That’s why we haven’t been able to prioritise making a small electric SEAT, which is where we should be.”
Griffiths also explained why SEAT didn’t join the Volkswagen ID.1 development, a new £20,000 small EV that will be exclusive to VW, without any siblings from SEAT, Cupra, Audi, or Skoda.
He argued that the cost of developing a unique version of the ID.1 wasn’t justified.
“If you want to be part of a project, you have to pay for your part of the development. There’s no point just slapping a badge on it; it has to be a proper SEAT, and that costs money,” he explained.
The former SEAT and Cupra chief said that the “Cupra brand is more profitable” so it makes more sense to spend that money on Cupras.
Despite his exit, Griffiths remains confident that a small electric SEAT will eventually come.
He said: “The time will come when it makes sense for us – and certainly for the whole Volkswagen Group.
“It needs a brand that can appeal to a younger generation and offer affordable electric mobility, and that brand should be SEAT.
“But right now, it’s not the priority.”
It comes after another massive carmarker “on the brink of collapse” recently agreed a £500million deal with a rival allowing a major change in a bid to stay afloat.
Ailing Japanese automaker Nissan has renewed its two-decade-long partnership with French firm Renault as part of a restructure.
It will allow for a reduction in both company’s cross-shareholdings, in a move aimed at helping Nissan‘s recovery.
The change in terms sees the required shareholding being lowered to 10% from 15% previously.
Renault CFO Duncan Minto told journalists on Monday: “The decision today gives Nissan additional flexibility, which would be the possibility for Nissan to sell assets and increase their cash position.”
The deal came a day before Ivan Espinosa took over as Nissan’s CEO, which is under pressure to significantly boost its competitiveness.
