Spanish-based automaker SEAT is having a pretty good time of things right now. Sales are booming across Europe with the first quarter of the year showing a growth of 4.8 percent in a market down 2.4 percent. The only problem for the bright and breezy carmaker is that it is running right on capacity at 500,000 units a year. Chris Wright reports from the Barcelona Motor Show.
SEAT is even looking to German parent Volkswagen to build some models at the company’s Bratislava plant. Even so, the company is taking a pragmatic approach to the market and is wary of over-extending during what are uncertain economic times. In Spain the car market has also dropped 5.7 percent and SEAT has managed to increase market share to 11.1 percent.
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It is concentrating on sales close to home according to export market director Pedro Catena. “We are running to capacity and 85 percent of our cars are sold in Europe and we are not looking beyond that. South America and some Arab countries are logical markets for us where we are reasonably well known and do well, but we are concentrating on Europe.”
He said SEAT still had some work to do on its European dealer network with new Block Exemption rules coming into play from October 1 this year. “We intend to bring the number of dealer partners we have down to around 1,000 from 2,000 three years ago, but this does not mean we are cutting back on the number of outlets. We will have fewer partners who will operate their own sales and service satellites.”
He said he was still looking to improve SEAT’s dealer presence in some large European cities and the company was prepared to run its own dealerships if necessary to get the right coverage.
SEAT Cupra GT unveiled
SEAT used the Barcelona Motor Show to unveil its new sporting ambitions in the shape of the Cupra GT which will be run in Spain’s GT championship series to further enhance the image of the brand.
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Executive vice-president for research and development, Winfired Burgert said: “Production and sales records are not our number one priority. We want to increase both the brand image and customer satisfaction through the quality of products and services while at the same time improving profitability.”
The Gran Turismo competition car is equipped with an Audi V6 engine producing over 500bhp and has been developed jointly by SEAT Sport and the company’s new design centre at Sitges.
Renault showed further Megane II variants; Schweitzer on X90
At a fairly quiet Barcelona show for new model launches, Renault had the most important unveil with the new Megane II saloon and estate which are due to go on sale in Europe later this year. The cars will be built in Spain and Turkey.
Renault chairman Louis Schweitzer did report that the company has been successful in developing a Euro 5,000 car its Romanian affiliate Dacia. The X90, as it is called, will be launched in the second quarter of next year, most likely at the Paris Motor show.
The car will be built in Romania and Russian and possibly Iran where Schweitzer signed a letter of intent for a new assembly operation in March. The car is aimed at the markets of central Europe and Russia but he added the company was also looking at other areas such as South America and North Africa. China is a possibility but no decision has yet been taken.
Despite its low cost, Schweitzer said the X90 was not a small car. The markets demanded a large sedan to replace a vehicle such as the Renault 12. “The car also has to be modern and reliable as well as affordable,” he added. “In these places, and in Russia, there is a big gap between what is available now, something like the Lada or a Euro 12,000 import – something in between those is where the market should be but now there is nothing. The X90 will give us a competitive edge so it was essential we focussed on the Euro 5,000 base price.”
Currently Dacia has capacity to build 200,000 cars a year but Schweitzer said the company was aiming to produce 500,000 cars a year by 2010. The X90 will be produced first as a sedan with further bodystyles likely in the future.
The Megane Sport Sedan and Sport Tourer launched at Barcelona use a slightly longer wheelbase version of the company’s C-platform, which will also underpin the new Nissan Almera.
This platform will also form the base of a new off-road vehicle being developed with Nissan although this will not be part of the Megane range according to Michel Faivre-Duboz, senior vice-president, engineering.
