Volkswagen\'s attempt to suppress Toyota by Seat
|   Monday, August 20, 2012
Volkswagen does not need to prove again that, they are one of the most popular and profitable automakers. But they have also got a loss making subsidiary with the Spanish car division Seat. There are many struggling competitors in the market such as Fiat, Peugeot, and Ford etc. The debit crisis of Europe has been eradicated by the most popular automaker, Volkswagen. After meeting the debit crises the auto makers have also showed its profit report which was really excellent.
The automakers have also expanded its market to Russia and Chinese. The production capacity is also increasing every day.

The Seat has accumulated around a sum of 1 billion Euros. It is continuously carrying on with the losses since 2008. But the profit made by the company is viewed once in only last 10 years. The performance was really dismal thus they have decided to close the Spanish unit of production in the market. It has been battered by the slump but the registration of vehicle has also remained uninterrupted. People are still buying the cars from the market. The only brand of Volkswagen that have a name plate struck in red is Seat. This is as per the quarterly result published by Volkswagen as on July 26th.

One of the car brand in the family of Volkswagen which have an uninterrupted and the black sheep without dispute is the Seat. This is the statement commented by the director of Automotive research centre at University of Duisburg. He also has said that, it will be really sensible with regards to economy to close this brand and make use of its feature in some other vehicle. Even the same segment is covered by Skoda. Thus, it is also known as one of the reliable car in the market segment.

The automaker Volkswagen has brought the Seat in the year 1986. This is introduced in the market in order to increase the exposure of the brand. Thus, the effort has given rise to a growth of the demand in Spanish market. This market has been working for years to mend the losses that were underutilized with the capacity of Seat. One of the factory have a production of 5, 00,000 vehicle in a single year. But there was a variation in the capacity of output that resulted within 10 years. A massive change has been viewed within the period of 2000 to 2010.

Two years before the automaker named Volkswagen have carried on with the strategy of cost cutting. The cost has been used up in manufacturing the luxury division of car which is known as Audi Q3 compact. The plant set for this purpose have got a target to produce 1, 00,000 of such variety in luxury vehicle. The four Seat model lines have contributed a lot in selling.

The automaker Volkswagen has found some problem with Seat in the year 1990. The global recession have also started in the year which have affected the sales of this branded car. There have been development of new models as well.
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