Reports: Volkswagen to phase out Seat brand by 2029
The Volkswagen board has approved a restructuring plan involving approximately 50,000 potential layoffs. German reports indicate that the group intends to fully phase out the Seat brand by 2029, with Cupra taking its place.
The board of directors of the global Volkswagen group approved yesterday (Thursday) an efficiency and restructuring plan for the German automaker that includes potential layoffs of about 50,000 employees. According to reports in Germany, at least one of the group's brands – Seat – is expected to disappear.
It should be noted that in recent years, several reports have appeared regarding the possible elimination of the Spanish brand. Seat is the Spanish arm of the Volkswagen group, while Skoda serves as the Czech arm. Similar to Skoda and Audi, the vehicles it produces are based on Volkswagen components. According to reports in Germany revealing what appear to be secret documents of the Volkswagen group published yesterday, the company is preparing for the full liquidation of the brand by 2029. Cupra, the Spanish sports brand of the Volkswagen group, will replace Seat as its "Mediterranean" brand.
Seat was founded in 1950 by the Spanish bank "Instituto Nacional de Industria" and Fiat. At the beginning of its journey, Seat produced Fiat cars under license. In 1986, the Spanish government sold control of the brand to the Volkswagen group. According to Volkswagen data, Seat and Cupra sold 586,300 vehicles last year, with Cupra sales rising by 33% compared to 2024, while Seat sales declined.
Seat is considered a popular European brand in Israel in the mass market segment, although, like many other European brands, Seat deliveries have been affected by the entry of Chinese automakers. According to data from the Israel Vehicle Importers Association, in the first eight months of the year, 2,748 Seat cars were delivered in Israel – a figure that places the Spanish manufacturer in 15th place in the market. Last year, during the same period, Seat delivered 5,341 cars.
It should be noted that Seat is not the best-selling brand of the Volkswagen group in Israel: Skoda is in seventh place in the market, with 15,581 deliveries – a slight increase compared to 15,491 cars in the same period last year.
