Volkswagen’s Spanish unit Seat posted a EUR8m operating profit in 2007, up from a EUR159m loss in 2006, helped by restructuring efforts, a company official confirmed to just-auto. Revenues rose a mere 0.4% to EUR5.89bn.
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Despite the profit gains, a year ahead of expectations, production fell 2.3% to 413,000 units at the main Martorell factory in Barcelona.
Though Seat hasn’t posted a net profit since 2005, VW’s chairman Martin Winterkorn praised Seat’s turnaround and said: “Whoever says Seat doesn’t have a future is wrong.”
Speaking at a media briefing to unveil VW’s 2007 results, Winterkorn said Seat’s plan to double production by 2018 and expand its model line-up by 40 cars and variants is on schedule.
The company is looking to expand in China, India, Brazil and Argentina and could manufacture in those markets. A decision is expected before the summer.
Countering Winterkorn’s optimism, Seat’s board director Francisco Javier Garcia, slammed the company’s former management for failing to take Seat to new emerging markets in line with VW group rival Skoda.
Seat executives did not have the “courage” to suggest emerging-markets expansion to VW bosses. The group has not favoured other brands against Seat, Garcia noted.
Ivan Castano Freeman
