Seat will lead VW’s expansion plans in North Africa and maybe even Mexico, as it seeks to enter new markets in the next decade.
The big reason for this is for the company to stabilize its earnings and reduce its reliance on the European market, AutoNews reports.
Seat will first take the leadership role in VW Group’s new factory in Algeria according to Luca de Meo, Seat’s president, speaking at the brand’s annual press conference.
VW Group has joined forces with Algerian SOVAC in order to assemble the Seat Ibiza, VW Golf and Caddy and the Skoda Octavia at the new plant in Algeria.
The final assembly of the new Seat Ibiza for the North African market will start at the new factory in the second half of the year, with the car to be built from parts supplied from Seat’s Martorell plant.
Luca de Meo also set the tone for Seat’s future plans saying “it would be healthy for us to sell about 30 percent of our cars outside Europe in next five to 10 years”.
At the same event Seat confirmed that a larger SUV to sit above the Ateca is also in the works, offering seating for five or seven passengers. “Large SUVs represent one of the fastest-growing markets,” de Meo said. “We are confident about the potential of our new car.”
The new model will become the third SUV of the brand after the Ateca and the upcoming subcompact Arona, which is due this year.