Volkswagen to Phase Out SEAT Brand by 2029 Amid Restructuring

Volkswagen's global board has approved a significant restructuring plan that may lead to the elimination of approximately 50,000 jobs and the discontinuation of its SEAT brand by 2029, according to German media reports. These reports cite alleged secret Volkswagen Group documents indicating a full phase-out of the Spanish marque.

SEAT, the Spanish arm of the Volkswagen Group, shares components with other group brands like Skoda and Audi. The plan reportedly designates Cupra, SEAT's performance sub-brand, to take over as the group's "Mediterranean" brand. SEAT was originally founded in 1950 by the Spanish National Institute of Industry and Fiat, initially producing Fiat cars under license before the Spanish government sold a controlling stake to Volkswagen in 1986.

In 2023, SEAT and Cupra together sold 586,300 vehicles. Cupra sales saw a 33% increase, while SEAT's sales declined. SEAT is a popular brand in Israel within the budget segment, but like other European manufacturers, it has faced challenges from the influx of Chinese car brands. Year-to-date, SEAT has delivered 2,748 vehicles in Israel, ranking it 15th in the market, a significant drop from 5,341 units in the same period last year.

In contrast, Skoda, another Volkswagen Group brand, holds the seventh position in the Israeli market with 15,581 deliveries so far this year, a slight increase from the previous year. Volkswagen has not officially commented on the reports regarding the SEAT brand's future.