Volkswagen Group Considers Phasing Out Seat Brand by 2029

The Volkswagen Group is considering the discontinuation of the Seat brand starting in 2029 as part of a broader corporate restructuring. According to reports from the German magazine Wirtschafts Woche, the group's supervisory board is meeting this Friday to discuss a transformation plan aimed at increasing competitiveness and efficiency. This plan may involve shifting investment and focus toward Cupra, a sportier brand that originated within Seat. Recent sales data supports this shift, as Cupra sold 328,806 units in 2025, a 32.5 percent increase, while Seat sales fell 17 percent to 257,432 units. In a statement, Seat denied that a final decision has been made, noting that the company is undergoing a global transformation to adapt to electrification and a changing automotive sector. The broader Volkswagen restructuring may include thousands of job cuts and the closure of factories in Germany to combat profitability issues and competition from China. One source notes that previous estimates suggested up to 100,000 global job cuts, with half occurring in Germany. Seat CEO Markus Haupt has argued that the Martorell plant may not be affected because it has already reduced structural costs by 20 percent. Founded in 1950 by the Instituto Nacional de Industria, Seat was acquired by Volkswagen starting in 1986 and has since become a symbolic brand for the motorization of Spain.