The Volkswagen Group casts doubt on the continuity of the Seat brand, according to the specialized media WirtschaftsWoche this Thursday, which accessed a leak of internal documents that suggest this. According to this media, among many other measures, the group will propose at its crucial supervisory board meeting tomorrow to eliminate the brand starting in 2029 as it will be absorbed by its sister brand Cupra. Seat states that “this is not official” and that “no decision has been made.”
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The future of the Seat brand as such has been uncertain for some time, as unions have warned after years without new models and significant investments, although until now it had not been proposed with such specificity. The growth and prioritization of the Cupra brand, which already contributes more sales and focuses investments, would support the decision. Within this hypothetical scenario, Cupra would remain as the sole brand and assume the products, sales, and production structures of Seat, which employs about 13,000 people, after an “economic optimization,” says the media.
The measure is part of the search for cost savings and structure optimization. “The Seat brand will be progressively eliminated in an orderly and profitable manner no later than the end of 2029,” it details citing reports to be discussed at the board meeting. Thus, it would already have been removed from the group’s 2030 plans.
With Seat and Cupra working together for years, “the gradual elimination reduces complexity and investment burden,” avoiding duplications. “Maintaining Seat in its current format would mean additional resource expenditure, while strategic development within the core brand group – which includes it – should focus more on Cupra,” specifies the media citing internal reports. In any case, the technical service for manufactured cars would be maintained.
A crucial meeting with the possibility of agreement almost ruled out
The supervisory board is a decision-making body where management, workers, and shareholders are present. It must approve the group’s major strategic decisions. The measure would be included within the adjustment plan the German giant is preparing worldwide, with the departure of 100,000 workers, potential plant closures, and adjustment measures in models – eliminating 50% – and production. This plan is debated in the meeting this Friday, although it is likely that no agreement will be reached due to the majority presence of members against the adjustment plans, such as unions and the state of Lower Saxony, warn informed sources. The clash between the company and unions for months anticipates a labor battle if the measures are not agreed upon.
To push the adjustment forward, Volkswagen has the alternative of taking decisions to an extraordinary shareholders’ meeting, where the majority game is more favorable as unions are not present.
Seat states that the possible end of the brand “is not official,” that the information has been obtained through leaked documents that even management itself has not seen, and that “no decision has been made in this regard.” “Volkswagen is working on a business transformation plan for the entire group to strengthen its competitiveness and efficiency. The goal is to make the entire group and its respective companies more efficient and agile, as well as systematically leverage potential technological synergies,” it points out. This strategy is being debated in various supervisory board meetings, they add. Volkswagen’s representation in Spain refers to Seat’s statements.
The Seat brand has gone years without receiving a new model, nor has it joined the group’s electric wave, which has focused on Cupra, with the Raval as its most recent novelty. Currently, Seat manufactures the Ibiza, Arona, and León in Martorell, with a schedule extending to 2029. Its latest variants, with hybridizations, could slightly extend the dates, according to union sources.
Cupra has been steadily gaining ground in recent years. The brand launched by Luca de Meo in 2018 has surpassed its older sister with higher-cost models and sportier design. In 2025, for the first time since its launch, Cupra sold more than Seat, with 328,000 units and 33% growth. Historic Seat, meanwhile, fell 17% to 257,400 units. The trend continues in the first half of the year, with Cupra delivering 170,100 vehicles, 60% of the total. Before summer, Cupra began manufacturing the Raval model in Martorell, an accessible electric model that is one of the cornerstones of Volkswagen Group’s electrification strategy.
The president of Seat’s works council, Matías Carnero, has considered it “unacceptable” that the historic Seat brand could disappear, appealing to administrations to prevent it. Carnero is part of the board that will meet this Friday to discuss the adjustments. In statements to EFE, he called for “caution” regarding leaked information, although he recalled that Seat’s electrification has required 10 billion in investment and also relies on public funds, so “if the brand disappeared, someone would have to hold the German consortium accountable.”
Rafa Guerrero, general secretary of CC.OO. inter-centers at Seat, calls for “prudence” and points out that until now the possibility had not been raised. “If an adjustment is proposed, we will be radically opposed. We do not see a scenario different from two brands, Seat and Cupra, as they have different customers and market niches,” he warns.
Unions insist on the need for Martorell to secure a second platform to have an electric vehicle of a larger segment – the Raval is a compact – that offers higher margins.
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