We told you about it a few days ago, the Volkswagen Group wants to reposition the SEAT and Škoda brands. According to Automotive News Europe, officials at the German group would like SEAT to become a premium brand, while Škoda would be “downgraded” to focus on premium manufacturers.
So, today, our English colleagues from Autocar reveal that the SEAT brand could be rebranded as Cupra. This is very surprising because the Cupra is SEAT’s new brand for sports cars. Therefore, the sports branch may change again and announce future SEATS which will therefore all be sold under the ‘Cupra’ logo.
CUPRA Tavascan Concept
Cupra Formentor Concept
Why the change?
Within the Volkswagen Group, discussions are taking place to provide a clear and strong identity for each manufacturer. As for SEAT, the aim is to target manufacturers such as Alfa Romeo thus becoming a more ’emotional’ brand. Last year, SEAT sold around 517,600 cars (+10.5% compared to 2017), but in certain markets such as France and Italy, sales are below forecasts (these markets are growing). For the German group, it is therefore important to take steps to improve SEAT’s commercial results in these markets. Some customers don’t buy models from the Spanish manufacturer because “it’s a CHAIR”. Therefore, SEAT would suffer for its brand image.
As Cupra is a relatively new manufacturer, it is easy for the Volkswagen Group to create an image of this brand to make it appear as a premium manufacturer. This is why SEAT can be Cupra!
Branding is important
“Seat has focused on growth and loyalty, but in some markets the Seat brand continues to be rejected by people with no image. We can fix that, but it will take time. Cupra shares We are starting from scratch, and maybe we can attract customers who otherwise might not buy our cars. Sell us these types of vehicles are more profitable.” said Luca de Meo, boss of SEAT.
All this information should be taken with a grain of salt because The Volkswagen Group has not decided anything yet. These are ways of thinking to improve the profitability of group brands. Moreover, the head of the group – Hubert Diess – pointed out that SEAT’s operating costs are as high as those of Volkswagen. However, the SEATS are sold at a low price.