SEAT loses… the Second quarter will be worse than the first

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SEAT loses… the Second quarter will be worse than the first

The recovery strategy of the brand will build around the production of electric cars.

SEAT, lost in the first three months 2020 48 million euros, expects even greater losses in the second quarter as a result of the pandemic COVID-19. It is reported by Automotive News Europe with reference to the statement made on the eve of the acting Director General of the Spanish brand Karsten Isensee during a press briefing.

Despite the pessimistic short-term forecast, “Seate” sure you will be able to recover from the blow caused by the coronavirus in the entire automotive industry. Part of the Volkswagen group, the company intends in the period from 2020 to 2025-th year to invest in the development of 5 billion euros. These funds will go to research and development, and one of the main bets made on electric cars.

Five years SEAT expects to start production of electric cars in his native Spain, at its main plant in Martorell. The company noted that the implementation of these plans will depend on the level of state support, the degree of development of charging infrastructure in the country and other factors.

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Last spring, SEAT presented a pre-production electric hatchback el Born, and just yesterday he got “charged” alter ego from the Cupra sub-brand. This model will go on sale in 2021, but will not release it in Spain, and at the Volkswagen plant in the German city of Zwickau, which the company plans to turn into the biggest electric mobility company of Europe.

There was a time when SEAT was the only unprofitable brand in the portfolio of the VW Group, but then things went uphill for the last three years the Spaniards showed sales growth double-digit. So, in 2019, they set a record 574 078 cars, 11% uplift in 2018. The current coronavirus crisis coincided for the company with the personnel changes at the highest level: CEO Luca di MEO left his post for a similar position at Renault, trying to reorganize the business after the scandal with Carlos Ghosn.

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