What's this about?

Dr. Francisco Javier García Sanz and Luca de Meo, SEAT's Chairman of the Board and Executive Committee Chairman respectively, have announced the company's Strategy 2025. The three pillars of the strategy are: models with a high profit margin, customer satisfaction and to be the most attractive employer in the Spanish automotive industry. To achieve that goal SEAT will launch four new models in the next two years and target growing segments of the market.

Referring to Volkswagen's recent troubles Dr. Francisco Javier García Sanz said: "Now is the time to act with a view to the medium and long term, regardless of recent weeks' news. The Volkswagen Group has full confidence in our plan for the future and it is perfectly integrated in their strategy. The models we have announced for the next two years will reach the market as scheduled and will contribute to SEAT's sustainable growth. And they are just the first step of this strategy."

What is in the pipeline?

First of the four new models is a compact SUV, due in the first half of 2016. This model, based on the Leon Cross Sport show car, will mark SEAT's entry into the crossover sector.

To control costs there is an efficiency programme called LEAP, which will be applied over the next two years. Part of that plan involves Line 1 at SEAT's Martorell plant, where the Ibiza is produced, which will be adapted to a new platform. Around 100 temporary employees will see their contracts terminated when production is halted on Line 1.

Other cost saving measures include reducing energy consumption, reviewing processes and revising expenditure on outsourced services, sponsorships, travels and events. Around €100 million (approximately £72 million) should be cut from the balance sheet without hitting SEAT's investment in new products.

John Lambert - 2 Nov 2015