Source:
http://www.autoindustry.co.uk/news/i...ews/16-09-05_4
Seat brand may be sold, reports Der Spiegel
16th September 2005
The German magazine ‘Der Spiegel’ reports today that Volkswagen may sell its Spanish volume brand Seat, as it continues to make losses despite the introduction of two new models this year.
The magazine said Seat had been given until the middle of 2006 to substantially increase sales and earnings sufficiently to justify further investments into the brand.
If Seat failed to return higher profits, VW may use the Seat factory in Martorell, Spain, to build cars of other brands or possibly put the brand up for sale to Chinese carmakers targeting Europe, added the magazine.
Seat has already started negotiations with its unions about possible job or pay cuts in response to a decline in production.