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Seat to launch the biggest brother of the Ateca in 2018 and accelerate its internationalization

Automotive News
The Volkswagen subsidiary in Spain invoices 8,597 million and triggers its profit to 903 million for the extraordinary. The company confirms that it will manufacture the new SUV in Wolfsburg.

Seat president Luca de Meo has confirmed that the company will manufacture the new SUV, the older brother of the Ateca, in Wolfsburg, Germany, starting in 2018. The new five- and seven-seat model is located in a segment Above the Ateca and still has to be called the name of a Spanish municipality. The vehicle is designed in Barcelona.

The director has not wanted to reveal how many units will be manufactured, but he has ensured that the new model will contribute to the company’s strategy of expanding the range of target audiences that will be a shock to sales and profit Seat, for its high added value.

The company also wants to accelerate its internationalization. In 2016, it exported 82% of its production, but nowadays the presence outside Spain is concentrated in few countries (Germany, United Kingdom, France, Italy and Mexico in particular). De Meo believes that “within five or ten years”, “30%” of sales have to be made in other countries to diversify geographical risks.

To this end, Seat has set itself in the countries of the Mediterranean and in Latin America. In the second half of the year he expects to start finalizing the assembled cars in Altoria at the Martorell plant, which could allow him to recover the sales that had been in the Maghreb years ago and which were stopped by the introduction of quotas. In America, Seat intends to follow the example of Mexico and penetrate Spanish-speaking countries, although it does not yet know when or where.

The Spanish vehicle manufacturer closed the historical year with a net profit of 903.2 million euros, an amount that contrasts with the profits of six million in 2015 and with the losses of previous years.

This evolution is explained by the capital gains of 671 million, which led the company in Martorell (Barcelona) to sell its subsidiary VW Finance to Volkwagen AG, the parent company. Without this effect, profits would have remained at 232 million. One of the consequences of these benefits will be that employees will receive a bonus of 6.2 million euros.

The above figures correspond to Spanish accounting and exclusively to Seat (they do not incorporate the Volkswagen plant in Navarra). Last week, Volkswagen presented profits for its Spanish subsidiary – including the Navarra factory – of 153 million, according to the rules of that country.
Beyond accounting and atypical, 2016 was a historical exercise in most of its magnitudes,

As evidenced by several figures: sales to final customers of 408,703 units; A production of 552,859 vehicles between Martorell and the rest of plants where it is assembled for the brand; A staff of 13,968 people, which represents 1,200 people more than a year ago (thanks to the consolidation of the technical center, with a thousand people), and sales of 8,597.3 million euros, 3.2% more Record of 2015. The company invested 652.6 million in 2016, 45% more.

“Higher sales volume, higher mix and cost optimization have led us to profitability,” said Luca de Meo, president of the company, who pointed out that the evolution is due to the good results of the Ateca , The Lion and the Alhambra, with greater added value than the Ibiza. Finance Vice President Holger Kintscher has emphasized that Seat is in a very healthy financial position, which guarantees investments in the future.
For 2017, Seat plans to start selling the fifth generation of the Ibiza from the summer and will also launch the Arona, the new compact crossover of the Spanish subsidiary of VW. The company, which also has on the horizon the development of electric and hybrid models, believes that this increases its coverage in the market (reaches more segments) and rejuvenates its offer.

EXPANSION – BY Artur ZanónBarcelona – 03/23/2017 (Translation Soft)

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