Micromobility, understood above all by motorcycles and small electric urban vehicles, is the alternative being considered for the Seat brand due to the acceleration of the Cupra subsidiary, which this year will contribute more than 50% of the company’s turnover automotive group Seat already has an agreement with Silence in the matter of motorcycles and is now negotiating the supply of a small quadricycle that the Acciona subsidiary plans to manufacture at the former Nissan facilities in the Zona Franca. It is a project that has been developed through the Seat Mo subsidiary, which currently sells 7,000 motorcycles a year.
It was announced yesterday by the CEO of Seat and Cupra, Wayne Griffiths, during the presentation of the results for 2022, a year in which it managed to get out of losses. The volume of business grew by 14% and reached 10,513 million euros, the second highest figure in its history after that of 2019, before the pandemic. 40% were contributed by Cupra.
Operating profit came to 179 million euros, in contrast to losses of 371 million the previous year, although 293 million euros of extraordinary costs had previously been discounted to fund a plan for 1,300 retirements until to 2026. The profit after taxes was 68 million, according to Spanish accounting standards. According to international standards, it was 33 million, as presented by the Volkswagen group last week.
“In the midst of a perfect storm of challenges, Seat made decisions in 2022 that will define our history in the coming years”, explained Wayne Griffiths. “Prioritizing Cupra, implementing a new cost reduction plan and redefining the way we work were crucial to ensuring the company’s long-term stability. A big step forward towards electrification was also made with the commitment, together with the Volkswagen Group, PowerCo and the partners of the Future: Fast Forward project, to invest 10 billion euros to transform Spain into a European hub of electric vehicle”.
With this investment and a more robust business structure, in 2023 Seat will move full speed ahead with the electrification of Martorell and prepare for Cupra’s major product offensive, which begins in 2024, Griffiths highlighted. The chief executive ruled out changing electrification plans in view of the turnaround underway in Europe after, against all odds, Germany vetoed a last-minute ban on selling new combustion cars by 2035. Seat and the VW group plan to phase out combustion by 2030. “Our commitment to emissions is firm,” declared the CEO of the Spanish brand.
“The regulations would have a very big impact on small vehicles”, said Griffith, who also chairs the Anfac employers’ association. This employer has already warned of the risk of factory closures.
The year 2023 has started better than expected, with more availability of semiconductors, which has made it possible to manufacture without almost resorting to the temporary employment regulation file (ERTO) currently in force. During the first two months of the year, the group’s sales have grown by 27%: by 12% those of the Seat brand and by 75% those of Cupra.
The run of Cupra has been precisely what has allowed the balance sheet to be straightened. “Although our volume of cars sold in 2022 was 4% lower than in 2021 due to the semiconductor shortage, our turnover grew by 14% compared to 2021 and revenue per vehicle increased by 18%. The change in trend in the company has been achieved thanks to the increase in the proportion of Cupra models sold, an aggressive revenue management strategy, reduction of general costs and improvements in efficiency”, noted David Powels, Vice President of Finance and IT.
Cupra is currently preparing for its biggest product offensive, which will begin in 2024 with the launch of the Tavascan and Terramar, followed by the small Urban Rebel in 2025. These new models will allow the brand to enter new segments and markets and reach the medium-term goal of selling 500,000 cars a year, according to data released this Wednesday. In addition, progress is being made in globalization. Having entered Australia, it now plans to tackle the difficult US market and this year alone, Cupra plans to open new City Garages (large showrooms and sales centers) in Berlin, Madrid, Manchester and Paris.
In any case, he assured that the company’s priority is to “maintain and grow” employment in Martorell and Barcelona and that is why work is being done to obtain a second manufacturing platform, additional to that of the small electric Urban Rebel, which will also have a Volkswagen version.
