VW's SEAT looks to Mediterranean to return to profit
SEAT, the Spanish unit of European auto giant Volkswagen, is looking to the Mediterranean region in its drive to return to profit, its new chief executive Juergen Stackmann said Wednesday.
"The Mediterranean is an area with relatively low competition. Everybody talks about the Far East and the South. But very few people think about the Mediterranean," Stackmann told reporters on the sidelines of the IAA auto show which opens this week.
"I'm interested in extending our footprint in this area. The major momentum from outside Europe comes from interesting places."
SEAT had now established Algeria as its seventh biggest market, with annual sales of more than 20,000 units, Stackmann said.
The Spanish automaker's new Leon model had been "well received by customers in Algeria. And we have great hopes actually that that market will become a huge next footprint for us in the North African region," he said.
Turkey and Israel were two other countries which "are going to be our key focus area for the time to come."
SEAT will nevertheless face stiff competition in the region from French makers Renault and PSA Peugeot Citroen, which have long been present in North Africa and command substantial market share there.
Turning to SEAT's drive to return to profit, Stackmann said: "We're obsessed with becoming a profitable brand."
SEAT has embarked upon a massive strategic re-think with the aim of returning to profit from 2014.
But that goal might prove more difficult than expected.
"It hasn't officially been abandoned," Stackmann said, but pointed out that the forecast had been made before the crisis and the market had shrunk radically since then.
"We are working toward getting to this point as soon as possible, but I will not make a prediction. It is going to be hard work," Stackmann said.
© 2013 AFP