Volkswagen removes ID and Seat brands from vehicles

author: FutureCar Staff    

Volkswagen Group is planning to phase out its Seat and ID car brands, potentially by the end of the decade, as it shifts its focus to its more popular nameplates. The ID sub-brand has served the purpose of distinguishing VW's new electric cars from its traditional range, but the Volkswagen brand will continue using its familiar car names for electric vehicles in the future, according to Thomas Schäfer, a board member of the company.

Schäfer also stated that the earning potential of Cupra, a performance brand under Volkswagen Group, is significantly higher than that of Seat. Therefore, the group has made it clear that its investment will be primarily directed towards Cupra, indicating that "the future of Seat is Cupra". Since its acquisition by Volkswagen Group in 1986, the Seat brand has faced challenges in achieving sustainable growth in sales and profitability.

Regarding the names Volkswagen will use in the future, Schäfer confirmed that Golf, Tiguan, and GTI will definitely be retained. He mentioned that other names will be evaluated on a case-by-case basis. Schäfer also expressed that the differentiation provided by the name "ID.3" was necessary to distinguish it from traditional internal combustion engine models. However, he believes that such differentiation may not be needed in the future.

Schäfer's statements were made during the IAA Munich international motor show, where he also highlighted the intention to increase investment in the Cupra brand. Cupra's sportier positioning and distinctive styling have allowed Volkswagen Group to sell essentially the same cars as Seat but at higher list prices. Schäfer emphasized that it has become increasingly costly to invest in both Seat and Cupra, leading to the decision to prioritize Cupra due to its greater earning potential and growing popularity.

While the implications for Seat's dealer network are currently unclear, it is worth noting that many franchisees represent both Seat and Cupra in the same location, which could help mitigate the impact. In recent years, Seat has made efforts to expand into other mobility channels, including the launch of its electric scooter, Seat Mo. Schäfer expressed confidence in the decision to prioritize Cupra, stating that it has surpassed not only newer brands but also established ones like Alfa Romeo and Polestar.

FutureCar Staff