The brand first on VW's chopping block
By James Cleary · 04 Sep 2026
Believe it or not, the VW Group’s Spanish subsidiary, Seat, was officially on sale in Australia in the late 1990s with the Toledo liftback, Ibiza small hatch and its Cordoba sedan sibling.And although they never came here, at that stage Cupra was the umbrella under which the brand’s performance variants were marketed.Now, in a case of the offspring outmaneuvering its parent, it looks like Seat is about to be the Volkswagen Group’s first brand casualty as the German giant’s financial woes continue.According to overnight reports out of Europe, VW is considering retiring the Seat brand by 2029 to focus on the future of Cupra, a stand-alone subsidiary for the past eight years.The Autocar report claims the proposal has been approved by Volkswagen's management board, and is due to go before the supervisory board for final sign-off tonight, our time (Friday, September 4).Cupra has sold more than one million cars worldwide so far, now comfortably outselling Seat domestically and globally with the former delivering a record 170,100 cars during the first half of 2026, compared to the latter’s 129,600.The retirement plan would see Seat disappear from Volkswagen Group's brand portfolio by the end of the decade (at which point it will have been in existence for 80 years) with financial resources then concentrated on Cupra.Seat currently offers a three model line-up in its domestic market - the Ibiza small hatch, Arona small crossover-style SUV and larger Leon in hatch and Sportstourer form.There’s been no response from the Volkswagen Group’s Wolfsburg HQ other than a spokesperson telling Autocar, “Internal documents are discussed and approved by the appropriate bodies and that the company wouldn't pre-empt that process.”Seat Cupra UK was more forthcoming, however, saying in a statement, “The entire industry, including the Volkswagen Group and, of course, Seat SA, is undergoing a profound transformation, driven by our commitment to electrification."The global context has changed significantly, with a strong impact on the automotive sector, particularly over the past year. “Therefore the Volkswagen Group is working on a transformation plan for the entire Group business to strengthen its competitiveness and efficiency."The goal is to make the entire Volkswagen Group and respective entities more efficient and leaner and to capture technological synergy potential consistently.“This strategy has been discussed in several supervisory board meetings."No decisions have been taken at this stage. We will inform (you) about any strategic decisions affecting Seat SA in due time," it said.The report makes the telling point that Volkswagen maintaining two Spanish brands increasingly means spending money developing, marketing and distributing cars that often compete for the same customers. So, the duplication appears ripe for rationalisation as the Volkswagen Group embarks on a massive restructuring program.At the company’s Annual General Meeting in June this year, VW Group Chairman of the Board of Management Dr. Oliver Blume told shareholders significant job cuts are coming in the face of “conflict in the Middle East, shrinking market volumes and increasingly intense competition.”Not to mention US tariffs costing the group a reported €5 billion (~A$8 billion) annually because VW Group built factories in Mexico for export to the U.S, built to take advantage of the free-trade agreement between the US, Mexico and Canada have become uneconomic.“We don’t earn enough money with our products. Developing a world car in Germany, producing it in Europe and selling it globally – our business model that was successful for decades – no longer works today.”At that stage Blume said, “For Volkswagen, Audi, Porsche and our software subsidiary CARIAD we have agreed to cut the number of jobs in Germany by some 50,000 by 2030.”And subsequently, Automotive News Europe reported Blume was expected to ask the group’s supervisory board to approve cutting 100,000 jobs (15 percent of the current workforce), in what is potentially the biggest restructuring in modern German corporate history.