Saturday, September 30, 2023

Cupra is already planning to manufacture and sell cars in the US

Converted to a motor that pulls Seat, Cupra, the sports sub-brand of the Spanish automobile, which is barely five years old, wants to conquer new territories, in particular the United States, a market that the managers of the brand, in particular its president Wayne Griffiths, consider particularly suitable for the company’s characteristics. “It’s about taking it to the next level,” Griffiths explains.

“We are evaluating production possibilities within the Volkswagen plants in the region,” he assured this afternoon at the presentation of the Cupra as part of the Auto Show Hall Munich (IAA) and confirmed shortly before in a press conference. US production will be considered once testing with potential customers in the state of California has been completed with “really encouraging” results. Business plans are already being drawn up, the strategy of which also fits well with that of the whole VW Group, which is present in the United States (5%) compared to its position in China (20% share), as well as its role as the second largest manufacturer in the world.

The idea is to make new Cupra models that adapt to the North American market—We can’t go there with small European-style models,” he explained—ccars that would be manufactured at one of Volkswagen Group’s three plants in Mexico and the United States: “If we want to be a big, global brand, the strategy is to go there.

Griffiths has recognized that the bet is not small and that it will require a large unencrypted investment, which is certainly consistent with the development of Cupra growth in recent years since he was born in 2018. There is no landing date in the USA yet, but as is well known, a decision is being made before the end of 2023.

Griffiths has made it clear that a bet of this caliber must be backed by solid financial results. In other words, continue to grow sustainably at the same pace as last semester. In fact, according to the data known today, Cupra delivered 150,000 cars worldwide, which represents an increase of 60% compared to the previous year and is becoming one of the fastest-growing European brands.

Mainly due to the good results of Cupra, especially his Bestseller Terramar, the group (Seat plus Cupra) achieved record financial results in the first half of 2023 with an operating profit of $371 million and a 5% higher profitability. However, he explains that “5% is still not enough, as the CEOs of both companies assume.

Since its inception in 2018, Cupra has accumulated a total of 400,000 vehicles, of which more than 25% have been sold in the first six months of the year, which gives an idea of ​​it growth rate of the company in which all hopes for the future of a company that continues without granting an electric vehicle to Seat, for example, which will continue as a brand as long as the regulations allow, focus on internal combustion engines.

As Griffiths points out, the US landing would be in the areas with the greatest affinity for European products—East Coast, West Coast, Florida, major cities—and has pointed out that the CEO has cited the DarkRebel prototype supercar, unveiled the day before, as an example of Cupra’s “ambitions”, not so much for what it could represent in terms of future sales but rather as an emblem: “If we want Cupra to be iconic, we have to have icons,” he said.

World Nation News Desk
World Nation News Desk
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