Cost-cutting measures by the Volkswagen Group threaten to phase out the historic Spanish Seat car brand starting in 2029. At least that is what the German business weekly WirtschaftsWoche has reported, claiming that the German automaker Volkswagen plans to withdraw the brand from the market “by the end of 2029 at the latest.”

The publication cites a resolution by the board of directors that Volkswagen’s supervisory board is expected to vote on, along with a package of cost-cutting measures proposed by the German group’s leadership.

Seat says no decision has been made. For its part, in a statement sent to the EFE news agency, Seat has stated that “no decision has been made in this regard” and that it will report on “any strategic decision” affecting the company “when the time comes.”

“The entire industry, including the Volkswagen Group and, of course, SEAT SA, is undergoing a profound transformation, driven by our commitment to electrification,” stated the company, which owns the Cupra and SEAT brands.

Founded on 9 May 1950, it was created as a joint venture between Spain’s government-owned Instituto Nacional de Industria, which held a majority stake, Spanish private banks, and Fiat. After being listed as an independent automaker for 36 years, the Spanish government sold SEAT to the Volkswagen Group in 1986, and it remains a fully owned subsidiary of the group.

The headquarters of SEAT S.A. is located in Martorell, near Barcelona, at the company’s industrial complex. Over 468,000 units were produced in 2020, with more than 427,000 cars exported to over 75 countries worldwide.

“The global context has changed significantly, severely impacting the automotive sector, especially over the past year. For this reason, the Volkswagen Group is working on a business transformation plan for the entire group to strengthen its competitiveness and efficiency,” the statement added.