Seat Head Says Skoda Factory Will Build Their SUV
|   Saturday, June 21, 2014
The first Seat SUV will be produced at the Skoda plant from Kvasiny, Czech Republic. The new model has already received green light from parent company officials (Volkswagen Group) and will hit the market in 2016.

The new Seat SUV will be positioned above the current Leon compact, both in terms of size and range of prices. At its base will be the MQB modular platform of the VAG group. Its design will take over many elements from the IBX concept launched in 2011 in Geneva.


The Iberian brand is lacking an SUV, without which the chances of a return to profit are minimal in the near future. In fact, Seat is the last name under the tutelage of Volkswagen devoid of an SUV range. Sales of crossovers and SUVs have exceeded all expectations in recent years, including on the European market. In fact, on this market Seat delivers the most cars from its portfolio.

The nomination of the Skoda plant in Kvasiny as the main production site will minimize expenses and increase the profit margin of the model, especially compared to the current costs generated by the Seat factory in Martorell, Spain. Employee salaries in Czech Republic are saving costs 25 to 50 percent, compared with Spain and Germany.

Currently, in the Kvasiny the plant Yeti, Superb and Roomster models are produced.

Seat, the latest unprofitable brand of the VAG group, reported financial losses each year since 2007. Last year sales increased by 11 percent, the Iberians delivering 355,000 cars. However, that was still insufficient to return to profit; the losses in 2013 are estimated at 152 million euro (from 156 million euro in 2012).

While the Skoda factory in Kvasiny will produce new SUV, the plant in Martorell recently received a third shift to manufacture the Leon and its derivatives bodyworks. Besides the Leon, the Seat plant produces the compact SUV Audi Q3.

At the time, the decision to make the Audi SUV in Spain has been linked to the opening of a new Volkswagen Group plant in the respective country, and the need for employment for its production capacity, at a rate which would ensure profitability.

Jurgen Stackmann, Seat CEO, said this regarding this decision: "There was capacity available in Kvasiny and we're glad we can use it. It's a very cost-efficient factory. It's an extremely important step for us to be present in the compact SUV segment. We just added a third shift for production of the Leon family to keep up with rising demand. Customer response for the ST is exceeding expectations. It's important that our sales growth be sustainable. We're looking at both options - developing more variants of existing models and bringing out new ones - to broaden Seat's product line further. The brand is on a very good path, but a lot more hard work will be needed."

Juergen Stackmann hopes that the warm welcome enjoyed by the new Leon on the German and UK markets is a good sign, and the introducing of the new SUV is also considered an essential step in the brand's offensive.
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