03.09.2026 15:00
Volkswagen Group, struggling with increasing competition from Chinese manufacturers and high costs, is considering ending car production at 76-year-old SEAT by the end of 2029. According to the plan based on internal documents, investments would be shifted to CUPRA, while the closure of 4 factories and a worldwide reduction of 100,000 jobs are also on the agenda. SEAT, for its part, stated that a final decision has not yet been made.
Volkswagen Group, struggling with competitive pressure from Chinese manufacturers, loss of demand in Europe, and high production costs, is preparing for the largest restructuring process in its history. According to a plan based on internal company documents, the German automotive giant is considering ending automobile production of its 76-year-old Spanish brand SEAT, founded in 1950, by the end of 2029, and shifting investments to the higher-margin electric CUPRA brand.
SEAT REMOVED FROM 2030 STRATEGIC GOALS
According to documents reported by the German business magazine WirtschaftsWoche and said to have been prepared for the Volkswagen supervisory board meeting, the company's management plans not to continue investments in the SEAT brand after 2029. If approved at the critical supervisory board meeting to be held on Friday, production of current SEAT models will be gradually phased out by the end of 2029. This would completely remove the brand from the Volkswagen Group's global strategic goals for the post-2030 period.
CUPRA TO BE THE FOCUS OF ELECTRIC TRANSITION
It is stated that Volkswagen prefers to focus on CUPRA, which was made an independent brand in 2018 and has higher profit margins with a performance-oriented focus, rather than transforming SEAT into an electric brand. Under the plan, new electric models, technology investments, and marketing expenditures will be consolidated under the CUPRA umbrella.
The focus of the group's 10 billion euro electrification investment launched in Spain will also remain unchanged. The battery assembly lines and production capacity installed at the Martorell factory will be allocated to the electric CUPRA Raval and Volkswagen ID. Polo models, ensuring the facilities remain operational.
SEAT: NO FINAL DECISION YET
Following the claims, SEAT management issued a statement confirming that a comprehensive transformation plan is being worked on to increase efficiency and competitiveness, but reported that no final decision has yet been made regarding the cessation of automobile production. While the Volkswagen side did not comment on the internal documents, the picture regarding the brand's future is expected to become clearer after Friday's supervisory board meeting.
CLOSURE TIMELINE FOR FOUR FACTORIES AND 100,000 JOB CUTS
The historic package to be discussed on Friday involves not only SEAT but also radical decisions regarding the group's production in Germany. According to the draft plan, it is proposed to close the Emden and Zwickau factories in 2031, the Hanover facility in 2032, and Audi's Neckarsulm factory in 2034. Within the restructuring framework, goals include cutting 100,000 jobs worldwide, reducing annual production capacity from 10 million to 9 million vehicles, and halving the model range.
PRESSURE FROM CHINESE RIVALS REDUCED PROFITABILITY
Behind Volkswagen's historic downsizing decisions lies the market loss experienced especially in China, the world's largest automotive market. The German giant, which lost its best-selling brand title to Chinese BYD in 2024 and fell behind Geely in 2025, sees a radical simplification process as necessary due to high labor and energy costs in Europe and the heavy financial burden of the electric vehicle transition.