Seat to Sell in China

Riding the high waves of success these days, German automotive group Volkswagen is slowly deciding on the course of action that will make its dream of becoming the biggest manufacturer in the world by 2018 a reality.

Having already set out the guidelines for most of its brands, Volkswagen is now taking into consideration all the steps it needs to take in order to turn around one of its slow performers, Spanish auto maker Seat.

In line with the expansion goals it set for all the other brands, Volkswagen has decided to bring Seat into China, still one of the fastest growing markets on the planet. The first encounter Seat will have with the Chinese market will take place in April, during the Shanghai Motor Show.

IHS Global Insight reports that the first models to be brought into the country, yet unnamed, will come as imports from Europe. After the Foshan assembly plant is ready in 2013, Volkswagen will produce the Seat models for the Chinese market locally.

In May last year, Volkswagen gave the Seat brand a five-year ultimatum to turn its business around or face discontinuation. The goal is to bring Seat in line with all the other brands, which have been given an annual sales target of 800,000 units by 2018. For comparison, Seat only sold 340,000 vehicles last year, losing in the process EUR311 million.

Given the right opportunities, Seat might live to see 2018 as a Volkswagen brand. Keep in mind that Seat sold the number of units it did last year in Europe alone, as this continent is its main market.