Coronavirus: Seat, yes to measures to ensure liquidity

“In 2020, we will work intensely to address the various challenges relating to our business, such as the fall of the markets and, especially, the effects of the Covid-19. The pandemic of the Coronavirus does not allow of any reliable estimate on the impact on the world economy and on the results of the Seat in 2020”. So Carsten Isensee, president and vice-president of Finance and IT of the Seat, commenting on the current situation dictated by the emergency Coronavirus.

“In this context, the application of measures to ensure the liquidity will be of the utmost importance for the whole duration of the crisis,” he added, Isensee -. When everything will be the past, priority will return to normal from the point of view of production and sales”. The automotive industry is facing one of the greatest transformation in its history and the coming years will be decisive, with the profound changes which will be reflected on the entire sector. The development of electrification, the targets linked to the reduction of emissions, to new ways of mobility, the fight against climate change and a scenario that adverse macroeconomic, exacerbated by the severe impact of the Covid-19, which has forced Seat to avail itself of a compliance Plan Temporary Employment (ERS), represent the challenges the most imminent.

Already in 2019, Seat has decided to take strategic decisions in relation to the most relevant projects. In this sense, and in the bosom of the review of the strategy of the Volkswagen Group regarding brands, markets and production systems, Seat has decided to postpone its entrance in China, and do not form part of the shareholding structure of JAC Volkswagen, while continuing to collaborate in the areas of Design and Research and Development. At the same time, Volkswagen will lead now the development of the Modular platform of Electric Propulsion (MEB) of the Group for electric cars of a size of about 4 meters, a project to which Seat cooperates actively.

In some markets such as the United Kingdom and Algeria persist, moreover, some uncertainties may make it difficult to the activities of the company. For example, following the changes of the regulation agreed in Algeria in mid-2019, the Seat has stopped the assembly of cars on-site, in the same way as other manufacturers operating in the Country. At the time, the Spanish brand and the Volkswagen Group are reviewing with the authorities the possible ways to continue to operate in Algeria, prejudice to the interest and the commitment of the brand in this Country and throughout the region.