SEAT Reductions

Dieselgate Roils VW's Spanish Automaker

Seat cars in a lot matias carnero Reuters
Matias Carnero, head of the SEAT workers' council, is worried about holding onto production in Spain.
  • Why it matters

    Why it matters

    As VW faces mounting fines and seeks to contain costs from the Dieselgate scandal, it is seeking ways to save money, including at SEAT, its Spanish subsidiary.

  • Facts


    • SEAT, the Spanish VW subsidiary, has made losses for years but this year planned to hire 100 new workers at the Martorell plant near Barcelona from January 2016.
    • Following the Dieselgate scandal, an investment package of €4.2 billion in SEAT operation is now in doubt.
    • SEAT saw new registrations slump 11.4 percent in October after the emissions scandal broke.
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The Volkswagen’s emissions scandal could have a dramatic knock-on effect on VW’s Spanish subsidiary SEAT, and a follow-on impact on Spain’s economy.

Matías Carnero, the head of SEAT’s works council, which represents workers claims VW is considering pulling production of the Audi Q3 SUV out of Spain and bring production of the A1, a small hatchback, out of Brussels to replace it.

“For us this would be a catastrophe,” Mr. Carnero said.

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