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Volkswagen Approves Major Future Plan, Leak Proposes Phasing Out SEAT

It signals a deep cost-cutting push to lower EV transition costs, followed by executive decisions on brands and plants.

Overview

  • The Volkswagen supervisory board unanimously approved the 'Future Plan 2030' on Thursday, committing to about 50,000 additional job cuts and a roughly 50% reduction in the group's model portfolio.
  • WirtschaftsWoche published a leaked 147-page internal report that reportedly recommends phasing out the SEAT brand by the end of 2029 and transferring SEAT products, sales and production infrastructure to CUPRA, a scenario described as an internal option rather than a final decision.
  • Volkswagen and SEAT have said no final decision has been taken and that any changes to brands or plant allocations will result from further executive-level analysis and formal announcements.
  • The possible removal of SEAT as a brand raises acute local risks for SEAT S.A.'s Martorell complex, which employs about 13,000 people and supports a wide supplier network, prompting unions and the Catalan government to mobilize to defend jobs.
  • Volkswagen frames the overhaul as a response to high electrification costs, slower EV demand and stronger competition from Chinese EV makers, and it must redesign its European production footprint by mid-2027, a step that could affect German plants and Spain's industrial role.