AM Online

SEAT targeted in VW Group cost reduction plans

Audi chairman Martin Winterkorn, responsible overall for the SEAT brand within VW Group, has said the Spanish subsidiary must cut costs and raise sales by mid-2006, and warned that job losses cannot be ruled out.

However, Winterkorn denied any possibility that the loss-making SEAT business could see factory closures or be closed down entirely. SEAT sales dropped 9% in the first half of this year compared to the same period of 2004, in which year they dropped by 4%.

VW Group’s 'ForMotion' cost-cutting plan envisages the achievement of savings of €10bn (£6.8bn) by 2008, and all subsidiary car brands and VW’s LCV unit are each targeted for savings of up to €3bn, with procurement costs being a strong focus.

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