Seat closed the first half of the year with an operating loss of 97 million euros and was the only brand in the Volkswagen Group to be in the red during this period. The Spanish company, which made money up until March, argues that costs related to the sick leave plan until 2026 included in the collective bargaining agreement sealed with unions this week have been deferred. It’s 244 million euros to cover the costs of the 1,330 departures of workers.
According to calculations, without this reference, Seat would have achieved an operating profit of 147 million. In any case, the half-year report of the Volkswagen Group shows how Seat’s sales revenue fell by 4.9% to 5,377 million euros after 236,000 vehicles were sold. This number is significantly lower than last year (27% down, 310,000 units) and can be explained by the problems of the group’s semiconductor self-sufficiency.
In any case, the company defends that Seat is on the right track for business, taking advantage of the best profit margins Cupra has in each of its vehicles and a Mix of heavier sales of higher added value (and more expensive) cars. Cupra has sold 79% more in the first half of the year, and its total deliveries (68,400) already account for more than a third of units sold.
In the same period, the Volkswagen Group sold four million vehicles, 14% fewer than a year ago. In contrast, the proceeds from these sales rose by 2% to EUR 132,285 million. The German car giant assures that these are “strong” results that will directly impact its profitability. Net income through June was 10,296 million euros, up 27%.
The group’s findings come days after the firing of group chief executive Herbert Diess, a victim of his confrontation with IG Metall after he insinuated the need for downsizing.
Group CFO Arno Antlitz defended at the press conference to present the half-year results that the plans for the IPO of the Group sports car manufacturer Porsche would be maintained. Oliver Blume [que relevará a Diess, como consejero delegado de ambas compañías, Volkswagen y Porsche]will be serviced by an independent Porsche with access to the synergies of Volkswagen,” according to Reuters.
The Volkswagen Group is sticking to its goals, but is not ruling out growth that falls short of expectations due to the economy, as the rise in raw material, energy and interest prices and the war in Ukraine threaten previous forecasts. In fact, the report warns that it anticipates a “sharp drop” in sales in Central and Eastern Europe as a result of the conflict. Volkswagen is keeping its plants in Russia closed due to international sanctions against the country, but is continuing to pay its workers.