SEAT Prepares for Improvement Plan to Be Announced in First Quarter

A boost to activity in sales and marketing, coupled with greater internationalisation of the brand, are two of the main priorities that SEAT has set itself for the next few years. To this end, the company is currently working on an ambitious plan to improve its business activity, to be presented shortly to the Volkswagen Group Supervisory Council, which has reiterated its support to the Spanish brand and its management.

These were just some of the improvement plans presented today by SEAT Chairman Erich Schmitt during the presentation of results for 2006 at the company’s headquarters in Martorell.

“SEAT has tremendous potential for development in the future. Now we need to concentrate on the company’s long-term strategy, looking for new working formulae which will enable us to achieve quantifiable results eventually leading to sustainable growth for the company”, emphasised SEAT’s Chairman.

According to Erich Schmitt, the company is equipped with the necessary tools to achieve its goals, one of which is to create a modern generation of models. To this end, and in the wake of the recent launch of the Altea XL, he voiced the intention of the brand to extend the current range of products, so as to be present in new market segments.

The Chairman prefaced his remarks concerning future plans with comments about SEAT’s main economic magnitudes for 2006, which albeit showing favourable changes, still demand future and further actions.

On the financial front, attention should be drawn to the positive development of company income from sales – a 5.2% increase over 2005, totalling 5,545 million euros in raw figures. In addition, after tax results showed a 49 million euro loss, an improvement of 21.5% over 2005.

Although these can be considered important improvements over 2005, Erich Schmitt mentioned that “we are already heavily involved in the improvement program for SEAT, some key measures are identified and making significant progress. However, in order to close the gap that separates us from reaching our objective, we may have to address additional measures that may affect our employees”.

Erich Schmitt also expressed his personal commitment and involvement in leading the turnaround process at SEAT towards success in the next few years.