MUNICH — Cupra is effectively ready to climate any financial downturn in Europe, Seat and Cupra CEO Wayne Griffiths stated, due to robust demand and future fashions.
“There’s a storm on the best way,” Griffiths stated on the sidelines of the IAA auto present right here. “The financial setting goes to get powerful subsequent 12 months, with inflation and rates of interest on the present ranges and a recession risk in of the most important European markets.”
Gross sales at Cupra, which turned a standalone model spun off from Seat in 2018, elevated 57 % to 107,300 within the first half of 2023 in contrast with the identical interval final 12 months – together with 23,000 gross sales in June alone. “You are able to do the mathematics to see the place it will likely be at 12 months’s finish,” Griffiths stated.
He stated that whereas Cupra was unlikely to overhaul Seat’s gross sales quantity this 12 months, the model, which sells higher-cost automobiles, is extra worthwhile. Mother or father firm Volkswagen Group has stated that Seat will tackle a brand new function sooner or later as a complete mobility companies supplier.
Along with a robust order e-book, Cupra is making ready to launch three key fashions within the subsequent two years, beginning with the full-electric Tavascan midsize SUV in a few 12 months, with European fashions exported from China. It is going to be adopted by the midsize Terramar SUV, a sibling mannequin to the Audi A3 (the 2 fashions can be inbuilt Audi’s manufacturing unit in Gyor, Hungary). The Raval small full-electric hatchback will debut in late 2025.
Cupra is concentrating on 70,000 annual gross sales for the Tavascan alone.
Cupra confirmed the Darkish Insurgent idea – with design parts of a sports activities automotive and a taking pictures brake hybrid — on the Munich auto present. “If we will dream it, we will make it,” Griffiths stated concerning the prospect of a manufacturing model, noting that the Tavascan was introduced as an idea on the 2019 Frankfurt auto present.
Griffiths sought to dispel doubts about the way forward for the Seat model, which has obtained much less funding from VW in recent times and has not introduced future electrical automobiles. VW model CEO Thomas Schaefer was quoted within the press saying “Seat has no future making automobiles,” however Griffiths stated he was misquoted.
Griffiths stated Seat is about to refresh the Ibiza small hatchback and Arona small SUV, whereas the Leon compact hatchback nonetheless has a very long time to run, he stated. He stated Seat gross sales are up in 2023 after struggling for a number of years as a result of scarce semiconductors had been rerouted to Cupra as a result of the latter model has increased revenue margins.
Cupra remains to be engaged on a attainable transfer to the U.S. market, Griffiths stated at a information convention on the Munich present. The debut, at an unspecified date, would wish a product suited to the North American market similar to a big SUV, he stated.
“Such SUVs can be found inside the Volkswagen group product portfolio,” he stated. “We’re engaged on all the problems and we’re shifting forward in a constructive route, however we will’t verify right now that from a sure date we’ll go to the U.S.,” Griffiths stated.
He stated that along with an acceptable product, Cupra would wish adequate funding to enter the U.S., which he stated might be an “costly experiment.”
One other key issue is manufacturing capability in North America inside the Volkswagen Group, Griffiths stated. “You must be there if you wish to become profitable”, he stated, due to the Inflation Discount Act, which incentivizes U.S. EV manufacturing, and the necessity to hedge currencies.
Requested if a big SUV for U.S. consumers would run counter to Cupra’s sporty picture, Griffiths stated, “No, as a result of I’ve seen the automobiles.”