On the hot SEAT: Sale considered for VW's Spanish brand?
Automotive News reports that incoming VW chairman Martin Winterkorn, Audi's current CEO, may want to sell the SEAT brand. In his current position, Winterkorn is responsible for SEAT, as it's part of the Audi group. He is apparently frustrated with the Spanish automaker's disappointing profitability and according to Automotive News, it's not part of his plans when he assumes his new position.Bernd Pischetsrieder, who will be replaced by Winterkorn, is said to oppose any such sale because it would include a transfer of valuable VW technical and operational information to the new owner. The anti-sale sentiment is apparently shared by Wolfgang Bernhard, but it's reported that he may also be leaving VW and is looking for a way out of his contract.
Amidst all the sale talk, SEAT sales through October are up 4.4%.The automaker has officially issued a blanket denial of any reports regarding a sale, calling the speculation "absurd."
[Sources: Automotive News (sub req), SEAT]
Reader Comments (Page 1 of 1)
Alex 11:29AM (12/06/2006)
I have high hopes for Winterkorn. He seems to have a clear strategy: position Skoda as low end, VW as middle, Audi as performance (with switch to rwd w/awd as option), Bentley as luxury, Lambo as supercars (if not kill).
Bugatti, Seat - kill.
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Eddie 9:51PM (12/06/2006)
SEAT has denied about the news around the brand in official press release, but let's see what will come next year.
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Tiago do Vale 2:31AM (12/07/2006)
You can't kill bugatti afer making a huge investment and before making some profit out of it: that's not a clear strategy.
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Richard S. 2:57PM (12/07/2006)
I also don't see the purpose of SEAT in VW's lineup. VW's attempt to turn itself into a luxury marque has failed and they are coming back to their natural market. As for cheaper entry level cars, they Skoda (which in my opinion are nice enough to canibalize VW's brand sales).
Having SEAT was a good idea in the days when European market was fragmented and nations protected its auto-markets with tariffs. Now with open and free-trade, having SEAT is redundant. I am sure some Chinese automaker with a horrible name,looking to buy an established brand would be willing to buy it.
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