Seat managers are considering building cars outside Spain.

Company president Erich Schmitt told the Handelsblatt newspaper that the company is considering 'localising' production in certain growth markets, such as South America.

"It doesn't make sense for us to ship vehicles given the low dollar exchange rate. We must build locally," said Schmitt.

According to the dpa-afx news agency, Seat must grow worldwide to meet the demands of VW group chief executive Martin Winterkorn.

His plans call for Seat to produce around 800,000 cars a year by 2018, up from around 445,000 last year.