For several weeks, the atmosphere has been electric inside the Volkswagen group, its president Herbert Diess pointing to Kiti: ” Kiti is the only brand in the group that is losing moneythat is a matter of concern.. Around the same time, Wayne Griffithsthe leader of Seti and Cupra, had fallen: “The Future of Seats is Cupra”. Matias Carnero, chairman of the works council and general secretary of the UGT union, responded strongly to criticize the management of the Volkswagen group for not giving Seat the path to its ambitions. Furthermore, if the Cupra’s product plan is familiar, that of Seat remains more complex. It’s enough to make Matias Carnero say that The seat has an expiration date set very firmly in 2028-2029.
Cupra, a very powerful “beloved son”.
Therefore, Kiti’s quarterly results were eagerly awaited. The vessel managed to return to the green with a small profit of 5 million euros. Operational performance (combination of models, prices, etc.) when we know that sales decreased by 15.7% in the first quarter of 2022, up to 2.4 billion euros, and that sales decreased by 27.2%, to 91,400 units. This good news is considered false in Seat as the changes come mainly from… Cupra.
Brand Cupra posts grow by over 72% in the first quarter of 2022, with 25,500 sales. It represents 30% of total Seat & Cupra volume, compared to 17% in fiscal 2021. Management confirms that. Cupra to double sales this year, targeting 160,000 units. For expensive models, Cupra also produces more than Seat, selling the Formentor SUV alongside the four Ibizas as a few funny souls from Martorell repeating themselves from time to time.
Back on track for profitability in 2022
There’s always that Seat expects to generate profits for the entire year of 2022, by continuing its work on cost control and pricing power. However, market uncertainty is weighing heavily on the forecast and therefore the situation will remain tense within the group.
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