VW Group CEO, Martin Winterkorn, is forging a new identity for struggling Seat.

Seat will shed its sporty image and aim to appeal to a wider audience, Winterkorn told the German consumer car magazine, auto motor und sport.

Winterkorn said that the brand has lost customers by focus exclusively on 'emotion' and sportiness, and offering high performance variants developing over 200hp. By appealing to a broader customer base, Winterkorn is aiming for Seat to return to being top of the Spanish market.

Last week, Reuters reported that Seat management is seeking a further 10% workforce cut to help restore profitability by 2008. In 2006 Seat lost EUR49.1m, down slightly on the previous year's loss of EUR62.5m.

Last month, Seat chairman Erich Schmitt said the key elements of a plan to return to profit by 2008 would be to launch new models and adjust costs, including staff spending.