The launch of the new Cupra brand allowed Seat last year to put its losses behind it and obtain an operating profit of 33 million euros, compared to losses of 233 million in 2021. What remains unconfirmed is the future of the Seat brand and whether it will be replaced by the Cupra banner.
During the Volkswagen Group’s results presentation press conference in Berlin, CEO Oliver Blume referred to Cupra’s good performance and praised the Terramar, Tavascan models and the new urban vehicle. Asked about the possible replacement of the Seat brand by the Cupra brand, the manager did not clarify the unknown and limited himself to asking for patience in the face of a decision that has not been taken firmly.
The only thing certain is that Cupra has electric models that will go on sale in the coming years, while Seat has none in its portfolio. One possibility – explain sources in the sector – is that Seat will remain the company’s mobility brand and Cupra will be the only brand for the vehicles. Blume highlighted the potential that the Iberian Peninsula has for the group now that the battery factory in Valencia has been approved.
Regarding the evolution of Seat sales, revenues grew by 13.8%, up to 10,900 million, thanks to “a better positioning of prices and cost reductions”, as detailed by the Volkswagen group in the annual report The extraordinary expenses for restructuring measures, which rose to 244 million, penalized the results to leave the operating profit at the aforementioned 33 million. That plan consisted of an agreement that extends until 2026 for 1,330 voluntary departures of workers, but their costs have been fully charged in 2022 to Seat’s income statement.
Combined sales of Seat and Cupra fell in the previous year to 468,000 units (-5.2%). Cupra deliveries increased to 152,900 units (up 92.7% from 2021) and were a key factor in Seat’s financial turnaround.
The Volkswagen group as a whole won 22.5 billion euros, 13% more. The net result was 14,867 million, almost the same as in 2021.
In an environment of paradigm shift with the intensification of the electrification process, the group announced that it will carry out investments worth 180 billion euros until 2027. Of this figure, 68% will be allocated to electrification and digitization (122,400 million). The gigafactories like the one in Sagunto will take a global investment of 15,000 million.
In his speech, Blume highlighted the investment that the group will carry out in Valencia in what will be Volkswagen’s second battery factory in Europe. This week the group made it official that the next factory for the production of batteries will be in Ontario (Canada). Analysts also assume that Volkswagen will prioritize its investment in batteries in the United States, over that in Eastern Europe.
Blume pointed out in a statement that “fiscal year 2023 will be a decisive year to execute strategic goals and accelerate progress throughout the group.”
By 2025, the consortium’s forecast is that one in five cars sold will be electric. For now, sales of electric cars totaled 572,100 units in 2022 and represent 7% of the total. The Volkswagen group closed 2022 with a turnover of 279,232 million, 11.6% more.
