SEAT publishes the results.  It wasn’t bad yet

SEAT publishes the results. It wasn’t bad yet

It is bad, even very bad. A decrease in sales by up to 25%, which, however, does not prevent the company from increasing profits for each car sold. In addition, Germany notes that sales of electric cars in Spain are bad and if they do not increase quickly, they will not invest 7 billion euros there. Only hope in Cupra

The company’s income after tax was EUR 256 million in the red. There was a decrease in production by 125 thousand. cars, ie by 25 percent. This includes the fault of the crisis in the semiconductor market, but recently also the war in Ukraine, which in addition causes problems with obtaining production parts for the German company. The operating result for 2021 is less than EUR 371 million.

SEAT income after tax / author: Fratria

However, Volskwagen squeezes more and more out of every SEAT / Cupry sold. Profit per vehicle increased by an average of EUR 480 to EUR 16,850 in the past year. Let us remind you that Cupra prices start at approximately 37,834 euros, or 177,727.28 zlotys. The company earns more than PLN 79,000 from each car sold. zlotys.

Reve on the car / author: Fratria
Reve on the car / author: Fratria

Germany will invest EUR 7 billion in Spain, but on one condition

Production in Zwickau was temporarily disrupted due to semiconductors and the situation in Ukraine. In the second factory, it was also stopped.

One thing we know for sure, the company cannot continue to generate losses and must be profitable. To accelerate our transformation, we must increase our mix, including for Cupra – announced Wayne Griffiths, president of SEAT and CUPRA during the meeting.

SEAT-VW investment in Spain / author: Fratria
SEAT-VW investment in Spain / author: Fratria

There are also significant challenges in managing production when the economic climate is volatile, and production can only be restored when “anything” in parts enters the market.

We have to work with the unions to reduce at the same time the production due to the parts, but once the parts are there, we have to increase significantly. We can’t work like we used to,’ said Wayne Griffiths, President of SEAT and CUPRA

Electricity, cupra, consolidation of the business model and management changes

Some argue that electric cars are a threat to jobs because they require fewer workers to produce them. But there is no plan B. The future is electric cars, Griffiths assessed.

In the company’s “Future Fast Forward” strategy, the group plans to invest more than EUR 7 billion in Spain, but… there is a big BUT! The conditions are that Spain increases the sales of electricians. The current level of sales of electric cars in Spain is assessed by the German headquarters of Volkswagen as very low.

We must be at the top of this list, not at the bottom, commented Wayne Griffiths, President of SEAT and CUPRA.

The CEO has high hopes for Cupra and is excited about the brand’s progress.

I am ambitious, I have never doubted our brand, but the results of the Cupra exceeded all expectations, even mine. Cupra’s success over the past 4 years, both in terms of sales and media coverage, has been remarkable, said Wayne Griffiths, President of SEAT and CUPRA.

Cupra sales this year are expected to double to 5 billion euros from sales of this model alone. The Cupra range will also be extended. To say that a new style was shown is to say a lot, because you can see even under the sneaks of Izera Polish in the past.

Nowa Cupra / author: Fratria
Nowa Cupra / author: Fratria

I can’t show too much because it’s still a big secret, but I want to say that the Cupra is not the end of Seat, the Cupra is the future of SEAT and the future is electric, said Wayne Griffiths.

Maksymilian Wysocki

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