Volkswagen is in crisis lately, hit by a strong Euro and weak sales. Some of it’s measures to counter this are plans to cut down it’s workforce by almost 10,000 German jobs, which could make a huge difference in high-wage Germany. It is also planning to assemble it’s next SUV in Portugal instead of Germany.
Which brings us to money-losing SEAT. Volkswagen owns the Spanish brand SEAT which makes sporty cars. Kind of reminds me of Alfa Romeo or Mazda.
According to Der Spiegel, Volkswagen AG has given an deadline of mid-year 2006 to substantially increase sales and earnings or it may be given the boot! If SEAT fails, Volkswagen might pursue action to cut losses, which could mean killing the brand and using it’s factories to assemble other models, or selling off SEAT lock, stock and barrel to Chinese companies who want to target the European car market.