Not all Volkswagen Group marques are doing as well – SEAT operating losses hit almost 340 million Euros last year. Volkswagen only has three unprofitable units – SEAT, Bentley, and Volkswagen commercial vehicles. SEAT’s 1Q loss this year of 110 million Euros is more than double the losses of the other two units.
Volkswagen bosses has given SEAT a deadline of sorts – it has 5 years to cut losses by expanding its model range and growing its market share outside of its ‘home market’ of Spain, where car sales have dropped by 21% last year, which is no wonder considering Spain current has a high jobless rate of 20.1 percent, the highest in the eurozone.
If the brand cannot turn itself around VW may just let it go, but it seems that things are so bad with the brand’s financials that VW would have to PAY someone to take it off its hands. “This is the last attempt for SEAT as a brand, it would not be sensible to view things differently. If one would want to get rid of SEAT, one would have to give the other party money to take it,” said SEAT CEO James Muir, who used to be ex-Mazda Europe.
Not sure if he was kidding about it or not.
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Seat is way behind Skoda now… Seat and Skoda stand at the same level but Skoda seems much more focus and concentrate whereas Seat seems to be quite laggy behind the times. Hope they will further expand the brand into other country as Skoda is now much more established in the world market compared to Seat…
VW did a good job with the nearly bankrupt Skoda. Back in the 80’s, a Skoda was something you laughed at. Today, it’s well respected, thanks to VW
If only Proton & the G realised how much they can gain by accepting VW’s earlier offer. VW could have transformed Proton into Asia’s Skoda. But, the kebangaan jaguh kampung held them back… well, that & the fear of opening the books to scrutiny that will expose the corruption, mismanagement & embezzlement of the cronies.
Totally agree with that.
You have to blame TDM for that……. he’s pride to sabotage Pak Lah that time get in the way…..
hey, I know who can buy a company like SEAT…… a company that can use SEAT’s designers and engineers. SEAT’s hatches look good with nice specs. whaddaya think?
token of 1 euro perhaps?
Hai ya, Proton lost, how come Seat also the same?
Let our Proton buy over Seat and also VW Commercial Vehicles….
Proton need them to expand…….
Maybe its a good idea for Proton instead of depend heavily on Lotus……
Even with the giant VW behind them, both SEAT & VW commercial vehicles cant break even, what makes you think Proton can do any better?
VW has global reach in terms of distribution, marketing, sales & support. Proton is chiefly concentrated in M’sia. It’s export only contribute a small percentage of total sales. On top of that, the export models are sold sometimes cheaper than domestic models. How many SEAT & VW commercial vehicle can they sell in M’sia? Will it be enough to break even? Come on, be realistic.
Proton needs a partner to expand. Go back to it’s roots of being a partner to a big boy. We cant be jaguh kampung forever. Making own cars is something to be proud of but isnt a commercial success internationally. If we were to partner a big boy, not only do we get to ramp up production (by exporting) but also means we gain by FDI, extra employment, vendors producing more parts, more taxes collected etc. It’s a win-win situation. We only lose the kebangaan jaguh kampung feeling.
u said VW cant make SEAT break even…then y the hell proton need them(if VW) to break even let a go gain profit? that mean they r no better than us……..
There’s potential in SEAT and VW commercial Vehicles…However, VW seem to be more focused on their main areas of development ….
If Proton were to be able to buy over, there might also be technology transfer. Together with Lotus help, Proton, Lotus and SEAT will be able to fight internationally.
I am talking about how to break into the International market through this way. This is the easiest way to break into it. Else, even for another 50years, Proton will still be like this.
Proton needs improvement. Getting into International level, everything will changes. And Proton will also be an international brand.
Then Malaysia can buy another piece of Euro trash.
it’s sad to hear this news because I’ve driven a SEAT Leon just a few months back and the machine was amazing (power wise). They now have 5 good years to turn around the company and if they can put together their focus and strategy I’m quite confident that they will start to shine :)
Too much siesta time?
Wonder why the Spaniards don’t copy our Nap policy then maybe can survive more than 5 years?
Cause they are EU, EU has their own laws. Cannot simply go make up NAP.
Proton should not buy this. Or if Proton wants to buy, just buy the engine design, and all the IP rights VW give to Seat. The cars may be one generation behind their VW counterpart, but they are still quite good cars.
seat supposed to do well in sales figure since their touring TDi perform very well…
bring in seat to malaysia
Seat cars are left hand drive made only, are you going to buy one if its available locally?
Seat is sold in uk, and uk aint left hand drive market.
ko malu saje…
the one i drove was a right-hand drive UK reg SEAT Leon in Malaysia bro! *shaking head*
hmmm let’s see…. what do Spain and Malaysia have more in common…. e.g. attitude wise perhaps when compared to the more serious minded Czechs or Eastern Europeans…
SEAT is just too happy go lucky just like P1… fun but not so nice to own in the long run…
so even if VW had bought a share in P1, they could still end up having another SEAT kind of problem…. only can sell P1 cars in homeland but export wise not much…
well…the only reason VW would want to buy into proton is because of the protected market. who wouldnt? is seat protected in thier own market?
Hmm… by reading comments from someone who wrote like a champ… i wonder how good is the writer at his/her kampung?
most of them wrote like they know everything!
agreed.just read this read that then think know everything already..sigh!
I dunno whether its a spanish thing or not….but throughout the history of seat, they have been some seriously ugly disporportionate cars….
yea, imagine yourself dancing with some ugly weird chicks, and that will ruin a tango dance………
i wont do that at the first place.haha!