Seat UK has admitted to causing confusion by saying it would produce two new models in the B-segment, targeting the likes of the Ford Mondeo, Peugeot 407 and Toyota Avensis. A spokesman said B-segment was an internal VW Group reference and that the new car would target a sector commonly known here in Europe as the D-segment, or upper-medium.

Whatever you call it, the D-segment remains one of Western Europe's largest market sectors with annual sales last year of 1,147,200.

Seat president Erich Schmitt confirmed the automaker would enter the segment in 2009 with saloon (sedan) and estate (wagon) models. The new cars will be built at the Martorell plant near Barcelona.

Schmitt said: "The assignment of these two new models to the plant in Martorell is an historic step for Seat. By these means, we enlarge our current product range, which not only gives our clients the possibility to grow with the brand, but also enables us to increase the profitability of our dealer network thanks to the availability of these new models."