Catalonia’s economy trembles over the possible end of the Seat brand

The possible disappearance of Seat has put businesses, politicians, unions and other economic and social groups across Catalonia and Spain on edge. The prospect emerged after Volkswagen unveiled restructuring measures to address its crisis, reviving long-standing fears that Cupra, the newer brand created within Seat in 2018, would eventually overshadow its historic parent.

Seat has existed for 76 years, but Cupra was designed to attract younger buyers, lead the group’s electrification strategy and improve profitability. The expected shift toward Cupra has therefore carried an emotional cost in Catalonia, even though the possibility has been discussed for years.

The uncertainty extends far beyond the name on the cars. Martorell is the center around which Catalonia’s automotive industry revolves and the region’s largest workplace, with more than 15,000 direct jobs. The negotiations over Volkswagen’s restructuring plan will now unfold under pressure from fears about both the brand and the factory’s industrial future.

German media first reported Seat’s possible disappearance on Thursday, citing preparatory documents for a Volkswagen supervisory board meeting. The group approved a plan to restructure 50,000 jobs by 2030, on top of another 50,000 layoffs approved in 2024, and proposed closing four German factories. It also acknowledged that it has excess production capacity of 500,000 cars and must focus on its most attractive models, simplify its product range by 50% and prioritize design, technology and lower costs.

Volkswagen did not explicitly decide Seat’s fate. In a statement on Friday, however, it said no decision had yet been taken while opening the possibility of ending investment in Seat from 2030. The brand is already in a vulnerable position: its cars are less updated than those of other group brands, no electric Seat models are planned and no new models are expected in the coming years. Cupra, created in Martorell, has become the group’s main vehicle for new, more profitable models and electrification. Catalan politicians have responded by insisting that Seat still has a future.