PARIS - SEAT launches a new Small SUV, news that Ibiza will get its 5th generation and Leon will be updated all next year.

• The new SUV crossover available in 2017 will be called SEAT Arona
• First SEAT will update the Leon and launch the fifth generation Ibiza
• SEAT unveils the Ateca X-Perience, which shows the future potential of the Ateca 
• Highlights of the stand include an interactive 4D amphitheatre, a non-stop press conference and a car configurator that uses BitBrain technology
• SEAT is preparing to offer the easiest mobility experience in the scope of a transforming automotive sector

SEAT has chosen the Paris Motor Show as the backdrop to reveal the details of the biggest product offensive in its history. 

Following the Ateca, the brand will update the Leon in 2017, launch the fifth generation Ibiza and conclude the offensive by making its debut in the crossover segment with the new SEAT Arona, a designation that was also unveiled today. 

Arona is the name of a city on the island of Tenerife, in the Canary Islands, as well as a place in the Italy’s Piedmont region. The new SEAT Arona will be developed and manufactured in SEAT’s Martorell factory in Barcelona.

SEAT President Luca de Meo explained that “the Leon, the Ibiza and the new Arona, together with the Ateca, are going to strengthen SEAT from a commercial, financial and brand image standpoint. 2017 is going to be a very special year for SEAT.”

Ateca X-Perience, a new SUV experience

The company is showcasing the new Ateca X-Perience in Paris and it will be, together with the Ateca, the centre piece from today until next 16 October. The Ateca X-Perience is a more adventurous, off-road version of SEAT’s first ever SUV, which by now has become the company’s third pillar. In the first few months following its launch it has accumulated over 21,000 orders, more than 39 million web visits and 1.5 million configurations via the Internet. The Ateca X-Perience, inspired by the Mediterranean culture, shows its most adventurous, off-road side and is an exercise that demonstrates the possibilities of the Ateca family and its future potential.

The SEAT stand, a 4D experience to live the brand

The Paris Motor Show is the ideal setting for SEAT to reveal its vision of the company, with the connected car as the key to future mobility. And for the occasion, the unique staging of an innovative double stand concept is different from anything seen until now at any motor show event and has been designed around 4D experiences that enable visitors to live and feel the brand and the city of Barcelona. In line with the growing role that is being played by digitisation in the company’s corporate strategy, the slogan “SEAT Always ON!” serves as inspiration for how the brand is staging its image in Paris. The stand features a 4D amphitheatre with a non-stop press conference as well as a car configurator that uses BitBrain technology to customise the SEAT Ateca according to visitors’ emotions and neurological input.

The outdoor area of the stand features a press room, a chill out zone and a place for socialising, among others, so that visitors can live and experience the brand. The Created in Barcelona concept will also shine a light on the city to highlight its modernity and its role as an international benchmark of urban design, all values shared by SEAT.

SEAT, ready to take things to the next level

In the next ten years, the automotive sector will experience a revolution with innovations in electrification, digitisation, new mobility services and connected cars. To respond to these challenges, SEAT has set up an Easy Mobility Team, a transversal crew that is set to lead the company’s transformation in terms of three main working areas: digitisation and R&D; customer experience and business development.

“The connected car at the core of the user experience is our vision of the future of mobility. We want to position the car as a service that offers a digital, connected experience”, underscored Luca de Meo.“Bringing SEAT to the next level means not only working hard to continue delivering even better products and services to our customer, but also using this revolution in the sector to play, this time, a front runner role in some of these new trends. We dream of making SEAT the brand capable of delivering the easiest mobility experience in this fast changing environment,” he added.

SEAT wants to be a leading brand in the field of connectivity and digitisation. In this sense, for example the company has become the first brand in the industry on a world-wide level to feature an app that is compatible with CarPlay, which enables the contents of an iPhone to be viewed and managed from the car.

The objective of the second area of work for SEAT is to enhance customers’ purchase experience and all related services. In line with this commitment, the brand launched the SEAT Live Store, a pioneering platform enabling users a close-up, virtual, personalised look at all the details on a car. The company has also reached an agreement with Amazon France to commercialise the Mii by Mango through the online retail giant.

SEAT will also concentrate its efforts on business development, using new mobility ecosystems to respond to the challenges faced by cities in terms of urban infrastructure, traffic systems and vehicles. An example of this commitment is the signed agreement between SEAT and Conector to launch a startup accelerator specialising in the car industry and mobility, as well as the implementation, in Barcelona, of the CARNET urban mobility research centre.

SEAT, strong and poised for its largest product offensive

The company’s digital transformation coincides in time when SEAT is consolidating its financial results and getting ready for its biggest offensive of new models. SEAT is progressing towards sustainable profitability and expects to close 2016 with profits. The company posted a half-yearly 2016 operating profit of 93 million euros, which is 77% more than the same period in 2015. In addition, sales are increasing for the fourth year in a row, with 277,100 vehicles delivered until August. Following the Ateca, SEAT is going to launch three new models in upcoming years – the updated Leon, the fifth generation Ibiza and the new SEAT Arona.

SEAT is the only company that designs, develops, manufactures and markets cars in Spain. A member of the Volkswagen Group, the multinational has its headquarters in Martorell (Barcelona), exporting more than 80% of its vehicles, and is present in over 75 countries. In 2015, SEAT’s turnover amounted to over 8.3 billion euros, the highest in its history, and the company achieved worldwide sales of more than 400,000 units for the first time since 2007.

SEAT Group employs more than 14,000 professionals at its three production centres – Barcelona, El Prat de Llobregat and Martorell, where it manufactures the highly successful Ibiza and Leon. Additionally, the company produces the Ateca and the Toledo in the Czech Republic, the Alhambra in Portugal and the Mii in Slovakia. 

The multinational has a Technical Centre, which operates as a knowledge hub that brings together 1,000 engineers who are focussed on developing innovation for Spain’s largest industrial investor in R&D. SEAT already features the latest connectivity technology in its vehicle range and is currently engaged in the company’s global digitisation process to promote the mobility of the future.

PARIS - SEAT will have a double hit at the years show with two area's one for cars the other for tech and chilling out.

• SEAT will have two spaces enabling visitors to live and breathe the brand, designed around a 4D experience and ‘Created in Barcelona’ theme
• SEAT is unveiling the Ateca X-Perience showcar in Paris

At this year’s Paris Motor Show, which opens its doors to media this Thursday (public show days 1 to 16 October), SEAT will reveal a unique stand concept, which is set to deliver a completely different brand experience to anything that has ever gone before.

The Spanish brand will be displaying a surprising new stand format made up of two distinct spaces. Firstly, an interactive 4D amphitheatre where a continuous press conference will be held every 30 minutes, together with a car configurator that uses BitBrain technology to configure the SEAT Ateca that best suits users’ emotions. And secondly, an informal outdoor area designed for socialising, including a press centre and chill-out zone, among others, so that visitors can live and breathe the brand.

The ‘Created in Barcelona’ theme will also feature prominently across SEAT’s spaces in Paris, highlighting qualities such as innovation, technology and urban design, all values shared by the car manufacturer itself and its home city of Barcelona.

The Ateca, the brand’s third pillar, will also play an important role in the French capital. SEAT’s successful first SUV is going a step further with an X-Perience showcar, which will be making its world debut. The Ateca X-Perience, inspired by Mediterranean culture, shows its most adventurous, off-road side and is an exercise that demonstrates the possibilities of the Ateca family and its future potential.

SEAT is also undergoing a process of transformation to become a brand that focuses on offering easier, more accessible mobility solutions. This transformation will modify the company’s vision for the future, its concept of mobility, products and services, as well as structures, procedures and internal teams.

The Paris Motor Show coincides with SEAT consolidating its financial results, as well as the beginning of its largest ever product offensive. The Barcelona-based brand is steadily progressing towards sustainable profitability and expects to close 2016 with positive earnings, after obtaining a half yearly operating profit of 93 million euros, 77% more than in the same period last year. Following the Ateca, SEAT will launch three new models in 2017, including a new SUV crossover which will be developed and manufactured in Martorell.

PARIS - SEAT launches a new derivative of the Ateca, the X-Perience at this years French auto Show.

• SEAT demonstrates the enormous possibilities of the Ateca family with the Ateca X-Perience
• SEAT Ateca X-Perience combines versatility, technology and design, with the ability to overcome any obstacle to reach a final destination

SEAT is set to present the Ateca X-Perience, together with a unique stand concept, bringing innovation to this year’s Paris Motor Show. The Ateca X-Perience is a demonstration that SEAT can surpass any limit, with a different take on the conventional SUV. 

Normally, Ateca customers are urban, but this car has much more capacity to drive off-road than one might expect. With the Ateca X-Perience, emphasis is put on its most adventurous character, in order to create a type of all-terrain vehicle that is simply off-limits to other current SUVs.

As soon as the driver pushes the start button, the Ateca X-Perience is ready for adventure, adapting itself to every driver situation, road condition and personal preference at any moment thanks to the Driving Experience drive selector located on the centre console. 

SEAT Drive Profile offers Normal, Sport, Eco and Individual modes, however, it’s also possible to go a step further, thanks to the 4Drive traction control settings, provided by the efficient Haldex system, which includes two additional profiles for snow and off-road, as well as Hill Descent Control function.

“The X-Perience is an exercise to show the Ateca family’s possibilities and potential in the future. We know that with the Ateca, we can go much further and it will be on display at the Paris Motor Show,” said the SEAT Vice-president of R&D, Dr. Matthias Rabe. 

“With the Ateca X-Perience we can go beyond that which we already have in the series. It’s for the customer that wants to go further, taking it to the extreme, for weekend adventures, and of course, off-road.” 

Surpassing the Conventional Limits

The objective of the X-Perience is to underline the all-terrain characteristics of the SEAT Ateca. It considers those customers that, for either their hobbies, lifestyles or simply for their needs, seek the best off-road qualities from their car. 

Ateca drivers are likely to spend around 95% of their time on asphalt, with the remaining 5% off-road, or, on snow. However, with the X-Perience, that proportion will switch to become 75% normal use and 25% off-road.

It aims for the customer that, above all, is going to use the Ateca off-road, for those demanding SUV drivers that need excellent all-terrain qualities. 

In short, it is a car destined for those that consider asphalt a formality and for those to whom tracks and lanes remain small and insignificant. The interesting thing, the attractive thing and the challenge are beyond conventional limits.

An Inspired 4x4 Design

SEAT brings a piece of Barcelona to Paris, inspired by innovation, modernity, technology and design, all values shared by the French capital and of course, with the Ateca X-Perience. 

Wherever you might have to stop, the Ateca X-Perience can continue because of its high-profile tyres and bespoke 18-inch rims, black wheel arch mouldings, non-scratch paintwork and excellent ground clearance.

Evidently, as well as superior practical 4x4 capabilities, the Ateca X-Perience also boasts striking design.“That’s why we’ve chosen a typical 4x4 design style, starting with the wheel diameter and including high-profile tyres, going for a 4x4 look with the front bumpers, sump guard and fog light protectors,”explained SEAT Design director, Alejandro Mesonero-Romanos. 

“The colour has ended up being very important too. We’ve chosen olive green matt, a natural colour that’s a little camouflaged, underlined with orange tones in the details that give it a more technical look.”

The exterior is completed with details such as chrome roof rails, a rear spoiler mounted at the top of the tailgate to bring out the car’s sporty character and mud flaps mounted to the rear bumper with the 4Drive and X-Perience logos placed on the boot. 

Additionally, a front diffuser defines and protects the lower grille, which is repeated at the rear of the Ateca X-Perience.

Tones linked with those used on the exterior have been used in the interior too, which is illuminated by ambient-light LEDs for darker conditions. 

Earthy colours of coffee and green have been utilised, combining with orange stitching on the steering wheel, seats and the gear knob, to reinforce the car’s technological nuances. Its sports seats are upholstered in suede leather, while the aluminium kickplates bear the X-Perience logo. 

The XP abbreviation is also present on the steering wheel. Completing its adventurous appeal are protective rubber floor mats, to combat mud and dirt, together with a chrome strip on the boot lip, just as the current Leon X-Perience has.

4Drive — Total Traction from a Powerful Engine

The SEAT Ateca X-Perience uses a 4Drive traction system. Thanks to the Haldex clutch system, the torque distribution between both axles is done in the most efficient way to ensure exceptional power delivery on terrain at any moment, even in tricky conditions. 

Furthermore, the advanced XDS traction control system ensures that each wheel seamlessly receives the necessary power to keep going.

SEAT’s latest showcar is powered by the 2.0 TDI 190 PS engine, which is a pleasure to drive both on- and off-road. 

Boasting 400 Nm of torque and allied to a seven-speed paddle-shift DSG transmission, it not only guarantees outstanding performance and low fuel consumption and emissions, but it also allows the driver to enjoy the versatility and fun of the Ateca X-Perience, without having to move his or her hands away from the steering wheel to change gears. 

This is a safety and comfort benefit that is evident particularly when faced with challenging all-terrain conditions.

Safety and convenience without compromise

As in every adventure, unexpected things can happen. The Ateca X-Perience can take everything in its stride, thanks to one of the most complete range of driver assist systems in the class. 

For example, Traffic Jam Assist coordinates the work of the Lane Departure Warning Assist and the Adaptive Cruise Control (ACC) system. Front Assist works as an emergency brake that recognises vehicles and pedestrians, as well as the Traffic Sign Recognition System, with Blind Spot Detection and Rear Cross Traffic Alert, a 360-degree camera with birds-eye view, Park Assist for parallel parking or angle parking, High Beam Assist…the list goes on.

SEAT is aiming to be a front-runner in connectivity, and of course, the Ateca X-Perience is no slouch in that department. Constantly in touch with the digital world, it uses the latest generation of infotainment systems including Easy Connect, SEAT Full Link (which incorporates Apple Car Play and Android Auto functions), an eight-inch touchscreen Media System and Wireless Charger which allows the driver to charge smartphones without pesky cables.

The SEAT Ateca, which arrived in UK showrooms earlier this month, launches ahead of SEAT’s next three new models due in 2017 and is capable of satisfying the off-roading needs of most drivers. 

Undoubtedly, many Ateca customers are trendsetters, with a young and restless spirit, looking for a car which suits their lifestyle. For them, the X-Perience endeavours to show that it is possible to go beyond the limits, that it is possible to enjoy a more adventurous Ateca: Created in Barcelona.

Did SEAT actually make a profit or not, well, acording to a recent report, not, but then its all how you read the results.

When is making a profit actually a loss? When you're the accountant at Volkswagen Group's chronic underperformer Seat.

Earlier this month, VW's Spanish unit reported itsfirst profit since 2008. On closer inspection, the 6 million euros after-tax profit Seat said it made in 2015, compared to a 66 million euro loss in 2014, isn't as impressive as it seems.

Firstly, the figure only includes Seat S.A. – the core company that lacks certain subsidiaries and is not representative of the overall "Seat Group" as the unit's 2015 annual report shows.

Secondly, the income statement was prepared using Spanish accounting principles rather than the international IFRS standard that VW Group is required to use to improve comparability among global corporates.

Thirdly, the figure is expressed in net profit rather than earnings before interest and tax (EBIT). No doubt it has its supporters and bottom line profits are important (certainly better than bottom line losses). Yet this is the kind of white noise that says little about the health of the underlying business, which is best encapsulated by its operating result.

Lastly, it needed help to get there. Seat actually received money back from the tax collector. Only then did it become profitable.

Smaller loss

After a request by Automotive News Europe, Seat provided results that showed as a brand it had narrowed its operating loss to 10 million euros last year from the 127 million loss posted in VW Group's 2014 annual report, a figure that is directly comparable to VW group profits.

The last time that Seat as a whole earned any money was when it posted the tiniest of operating profits in 2007 at the absolute high point of the Spanish car market.

This isn't to say I am not confident that Seat can finally contribute positively to results. The launch of the critical Ateca compact SUV will finally bring a margin-rich product to its range that – even after the inevitable launch costs – should propel Seat into the black for this year. Seat also plans to save around 100 million euros by improving processes, focusing on higher added-value business and reducing costs.

Although it's important to follow Seat on its quest to break even, it's equally worthwhile to look at the cashflow statement. That is one of the few aspects of a business that should not differ regardless of what accounting standard is used, since it is supposed to reflect cold hard cash moving into and out of the till over the reporting period.

Here the company for the third year in a row was able to fund itself through its own internally generated cashflow and even have a further 310 million euros left over.

This figure of course doesn't factor in typical non-cash charges such as from the depreciation that inevitably results when investing in future growth. This alone can make the difference between earnings and losses, and in fact it amounted last year to roughly 310 million euros as well.

Helping Dieselgate costs

What this free cash flow figure tells us importantly is that Seat does not represent an actual drain on VW Group's precious liquidity reserves – every euro of which will almost certainly be needed to pay the costs from the Dieselgate scandal.

Indeed just the opposite proved to be the case, according to the annual report. After adjusting for currency effects and a small 10 million payment elsewhere, the remaining 260 million euros left in surplus cash at Seat went straight into servicing debts owed to VW Group and other associated group companies.

Seat was allowed to keep 100,000 euros at the end of last year, unlike in the previous reporting period when it was left with nothing in the till. The part of the near 4 billion euro balance sheet that lists cash and cash equivalents among its assets actually had zero-point-zero. At least now there is the slimmest of cash reserves.

This suggests the company may now have fully paid off whatever liabilities to Wolfsburg had been hanging over its head at the start of last year and can start planning now for the future.

If Seat proves this year that it will no longer be a drag on either VW Group's profits or cash, the repeated speculation that VW will dump the brand may come to an end.

Seat (Sociedad Española de Automóviles de Turismo) was created in 1950 as a prestige project under former Spanish dictator Francisco Franco. It has never had a strong heritage or aspirational brand image.

After acquiring majority control in 1986, VW has sent one executive after another to Barcelona in an attempt to turnaround the loss-making business. Former CEO James Muir said in 2010 that the brand had one last chance to break even in five years.

Even if VW Group has to dispose of some of its 12 brands to fund the costs of its emissions crisis, the company could not expect to raise much by selling off a sub-scale Spanish carmaker with a weak brand image.

Christiaan Hetzner

REPORT HERE

SEAT delivers growth in a large number of markets resulting in a a great year for the Spanish brand.

• Production in Martorell reaches its highest volume since 2001
• Luca de Meo – “The SUV is set to become the brand’s third major pillar”
• SEAT Quality director Joaquín Serra – “Quality is essential for competitiveness”

SEAT closed 2015 with increased sales for the third consecutive year. Brand deliveries broke the barrier of 400,000 vehicles sold in a year (400,037; +2.4%) for the first time since 2007, amounting to a growth of 25% since 2012 (321,000 vehicles).

SEAT Executive Committee Chairman Luca de Meo delivered the annual results this morning on the occasion of the first edition of the 2016 “Encuentros SEAT” meeting, under the title “Quality: success factor of Spanish industry.” 

The increase in sales is a result of recovery in Spain (77,200 vehicles; +14.3%) and Italy (15,900; +22.1%), the fifth consecutive year of growth in Germany (87,800; +3.8%) and the successful Mexican market (24,100; +13.2%), which is the fourth largest for SEAT. 

In addition, the brand achieved its best-ever sales results in countries such as Switzerland, the Czech Republic, Denmark, Turkey, Israel, Tunisia and Morocco.

Regarding its model line-up, sales of the Leon went up by 4.4% (total: 160,900 units) and was once again the brand’s top-selling car. Meanwhile, the Alhambra posted the highest increase (17.2%) and achieved the second best sales result in its history (27,000). The Ibiza also made progress, with a 2.4% growth, amounting to a total of 153,600 delivered vehicles.

The sales increase, in addition to the success of the Audi Q3, boosted production in Martorell by 7.8% (total: 477,077 cars), reaching the highest figure since 2001. The Martorell plant manufactures the most cars in Spain and has recorded its sixth consecutive year of growth. Between 2009 and 2015, production volume went up by 60%.

When speaking about 2016, Luca de Meo explained that “the highlight of the year will be the launch of the first compact SUV in the history of the company”, which is due to reach the dealerships in the middle of the year. It will be joined by three more new models in 2016 and 2017. 

“The SUV is set to become the brand’s third major pillar, together with the Leon and the Ibiza, and will enable us to cover the fastest growing segment in recent years”, said SEAT Executive Committee Chairman.

Quality – a success factor

Furthermore, in his presentation, SEAT Quality Director Joaquín Serra highlighted the opportunities for the brand to improve competitivity through excellence in quality. 

“Design, quality and cost efficiency are key elements. The Quality department is involved in the entire cycle of the automobile, from vehicle design and development to supplier component industrialization and in-house production, all the way to after-sales service. The challenge for the entire Quality team is to make SEAT a distinctive brand with industrial excellence.”

SEAT to Spend Spend Spend on new Equipment, Facilities and Research and Development between now and 2019.

SEAT is going to spend 3.3 billion euros on equipment, facilities and R&D between 2015 and 2019. The announcement was made by SEAT Executive Committee President Jürgen Stackmann during the visit to the company’s facilities in Martorell by Spanish Prime Minister Mariano Rajoy, on the occasion of the 40th anniversary of the SEAT Technical Centre. 

The Premier was joined by Dr. Francisco Javier García Sanz, member of the Board of Management of Volkswagen AG and SEAT Chairman of the Board of Directors, and Jürgen Stackmann.

Stackmann pointed out that “the 3.3 billion euros is earmarked for promoting new vehicle development R&D projects at the SEAT Technical Centre as well as equipment and facilities in the Martorell factory”. 

As it currently stands, this spend, which is the largest in the history of SEAT for new models, will go towards launching four new vehicles in the next two years. 

“These models are part of an ambitious plan to continue to strengthen the brand and boost sales, which have been growing consistently since 2013. The spending on innovation ensures competitiveness and employment, and secures the future”. 

The first model of SEAT’s offensive to reach the showrooms during the first half of next year will be a compact SUV, the brand’s first incursion into this segment.

The 3.3 billion euro figure is part of the amount announced by the Volkswagen Group last May. In this respect, Dr. Francisco Javier García Sanz indicated that “Spain is a key country in the Group’s strategy. 

These resources underscore our commitment as a driver of the Spanish economy and represents a guarantee for the future”. He went on to stress that “the 3.3 billion euros strengthen SEAT’s position within the Volkswagen Group and as the country’s main industrial investor in R&D”. 

SEAT is the only carmaker which, bolstered by its own Technical Centre, has the capacity to design and develop vehicles in Spain. In the last five years, the company has spent 1.4 billion euros on R&D.

SEAT is one of the main pillars of industry in Spain and the largest company in the car industry, which currently accounts for 10% of the country’s GDP. SEAT contributes roughly 1% to Spain’s GDP and 4% to Catalonia. Many SMEs are suppliers to SEAT, which provides direct and indirect employment to around 70,000 people. 

The spending announced today will also have a positive impact on the auxiliary industry as it will significantly increase the supply of parts and components manufactured in Spain.

Spanish Prime Minister Mariano Rajoy acknowledged the spending made by the Volkswagen Group and SEAT, which continues to strengthen the automotive industry as one of the country’s strategic sectors. 

In his first trip to Martorell, Rajoy visited the brand’s Design Centre and got a close look at the vehicle development process. In this facility, which is a part of the Technical Centre, technology and creativity come together to produce all of the brand’s future models.

Following the visit, the Prime Minister was transferred in a Martorell built CNG fuelled estate version of the Leon TGI to the Meisterbock, where SEAT ensures the quality of its vehicles during their launch and development phase. Rajoy witnessed first-hand all the work and latest technologies put in by the company to ensure the precision and perfection of all its vehicles.

The Prime Minister’s visit coincides with the 40th anniversary of the SEAT Technical Centre (CTS), whose creation was a turning point for the company and the car industry in Spain. From the outset, the Technical Centre shaped SEAT’s genetic make-up and has been responsible for developing the company’s most iconic models, such as the Leon, Ibiza, Toledo, Alhambra, Malaga, Marbella, Cordoba, Altea and Arosa, among others, which were all shaped by a common development philosophy that confers them with signature SEAT character and silhouettes. 

In addition, the CTS participates in Volkswagen Group projects and has developed and implemented absolute state-of-the-art technologies, the use of ecological Ecomotive engines and systems that enable car connectivity.

Over the course of these last 40 years, the SEAT Technical Centre has become the main local and national driver of industry and serves as a catalyst of technological development among businesses, institutions, universities and suppliers to the company all over Spain. Today it occupies an extension of 200,000m² and by the end of the year will employ 1,000 engineers, after the addition of 100 new employees who are being recruited in recent months.