Volkswagen has got some major plans for SEAT. Currently the Spanish car company are one of the worst performers in the Volkswagen Empire. It is clear that drastic improvements need to be made.

Volkswagen is taking the issue very seriously. They are currently competing with the likes of Toyota and General Motors to take that number one spot, currently held by General Motors, with Toyota holding the title previously. Volkswagen managed to finished in second place last year, but have an overall target of peaking at number one in the year 2018.

SEAT is making losses, like most mass car manufacturers in Europe. SEAT is clearly holding Volkswagen back at present. Volkswagen is one of few mass manufacturers who have coped with Europe’s debt crisis and remain as the region’s number one seller. In-fact they have sold more as year on year figures represent and have even reported more profits. Capacity has expanded in the Russian car market too.

SEAT‘s losses equal $1.24 billion since the year 2008, which represents a terrible performance. Profit has only been made once in 10 years. This situation appears to mirror that of General Motors and Vauxhall, with some suggesting that SEAT could indeed close down.

In Spain, car sales have fallen by a considerable amount. It is at it’s worst level for more than two years. SEAT is the only brand that is making losses within the Group as a whole.

Some experts have suggested that closing down the brand would be a quite a good idea considering how badly SEAT are letting down the rest.

Volkswagen purchased SEAT back in 1986 when the Spanish car market was booming. SEAT’s factory in Martorell can produce around 500,000 cars per year but not all of that is being properly utilised.

Volkswagen decided to bring over the production of the Audi Q3 SUV to the Martorell plant in 2011. The reason was simply due to the fact that the capacity of the plant was not being properly fulfilled. This plant alone builds up to 100,000 Audi Q3’s every year.

SEAT’s problems originally started back in 1990. This came as a huge shock to Volkswagen who had at the time invested heavily in the Martorell factory. Is it about time Volkswagen let their Spanish auto company go?