Shock plan at Volkswagen could see Seat phased out by 2029

Volkswagen could withdraw Seat from the market by 2029, according to German media, in one of the most dramatic measures linked to the automaker's largest restructuring.

The company's supervisory board reportedly approved a recovery plan proposed by management. The plan aims to preserve Volkswagen's competitiveness by reducing costs and simplifying processes. Seat, the Spanish brand founded in the 1950s by the Spanish state and Fiat before Volkswagen acquired it in the 1980s, was excluded from the group's strategy for 2030, reports said.

Volkswagen instead plans to place greater emphasis on its sister brand Cupra, which has overtaken Seat in sales. Bild reported that Cupra delivered 170,100 vehicles in the first half of 2026, compared with 129,600 for Seat.

A Volkswagen spokesman, contacted by the German newspaper, declined to confirm the reported documents. "Internal documents are discussed and approved by the relevant bodies. We do not anticipate this process," the spokesman said.

Seat's possible closure forms part of a broader restructuring under Chief Executive Oliver Blume. The supervisory board is also due to discuss the future of four Volkswagen plants in Germany and a possible further reduction of tens of thousands of jobs worldwide. Particular attention is focused on facilities in Zwickau, Emden and Hanover, as well as Audi's Neckarsulm plant, which could face closure by 2034. Worker representatives led by works council chair Daniela Cavallo and the state of Lower Saxony have opposed possible cuts.

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Internal documents are discussed and approved by the relevant bodies. We do not anticipate this process