Volkswagen is phasing out its historic Spanish brand, SEAT. The German automaker is overhauling its strategy to compete with rising Chinese electric vehicle manufacturers. CEO Oliver Blume is leading this streamlining effort to reduce costs and complexity across the group.
Future investments will focus on Cupra, the faster-growing electric-focused brand spun off from SEAT. SEAT has not launched a new model since 2020. The company will not replace SEAT's current combustion-engine models.
This consolidation addresses the intense pressure legacy automakers face during the electric vehicle transition. Volkswagen aims to improve profitability by concentrating resources on high-potential brands.
Separately, Berenberg maintained its Buy rating on Volkswagen. The firm cited the ongoing restructuring plan as a positive catalyst.