Catalan automotive company Seat has experienced notable growth in the first half of the year, tripling its operating profit to 122 million euros. This result contrasts with the situation of its parent company, the German group Volkswagen, which is facing potential staff reductions.
Specifically, Seat's profits increased by 84 million euros compared to the same period last year, when 38 million were recorded, representing a 221% rise. This improvement is mainly attributed to the success of the Cupra brand and the exemption from additional European Union tariffs for the Cupra Tavascan, manufactured in China. Seat's revenue amounted to 7.7 billion euros, 1.3% more than the previous year.
In parallel, the Volkswagen Group saw its profits fall by 30.7% in the first half of the year, standing at 3.103 billion euros. The German company attributed this decline to a "complicated market environment," although its revenue remained stable, with a slight reduction of 0.2% to 158.192 billion euros.
The boost from the Cupra brand has been key to Seat's strong results. The launch of the Cupra Raval in April doubled order forecasts, becoming the most successful model and causing an 85% increase in orders for the brand's 100% electric vehicles. Between January and June, Cupra delivered 170,100 vehicles, its best semester to date.
Currently, the Volkswagen Group is engaged in negotiations for a new restructuring plan that aims to reduce its model offering by up to 50% and production by 25%. According to reports from the German publication Manager Magazin, the plan could involve cutting up to 100,000 jobs globally over the next five years.
