The Seat Martorell plant is back on track
- Contrary to what had been announced by the Volkswagen group, the Seat brand will not be discontinued by 2030. Initially, the Volkswagen Group had planned to develop the Cupra brand, positioned as sportier and more expensive than Seat, with the aim of increasing profit margin rather than volume, but this encountered several obstacles. In an environment where the purchasing power of European customers is limited and stagnant, the demand for cheap vehicles remains significant (to the point that the Dacia Sandero was the best-selling car in Europe in 2024).
- The Martorell plant (Spain) will ultimately not be used to produce all of the Volkswagen Group's A/B segment electric cars (ex ID1, ex ID2 and derivatives) since the model that was to be called ID1 will be produced in Portugal and the other model that was to be called ID2 X will be produced in Pamplona (Spain), as well as its Skoda version.
- Given that electric car sales are not as high as initially projected, the Martorell plant will ultimately not produce as many cars as anticipated. Therefore, another range of vehicles will be needed to bring volume to this factory, especially since the Audi A1, which is produced there, is expected to cease production next year.
- It was difficult for the Volkswagen Group to replace the small Seat Arona and Ibiza with Cupra models of the same size, as the Cupra brand is positioned in the premium segment and has a sporty focus, which doesn't suit either the Arona or the Ibiza. Conclusion: the Seat brand will continue to exist beyond 2030, with a range of economical vehicles that could align more closely with Dacia's philosophy.