SEAT to End Production of Exeo Model

MADRID – SEAT will stop production of its Exeo model next summer, the auto maker confirms.

Matias Carnero, president of the SEAT works council, tells Spanish media the Exeo has not been in production for the past 19 weeks due to sluggish demand, though the auto maker says that is not true.

The medium-size sedan, which sits atop the SEAT range, posted sales of just 3,160 units last year, down 55.8% from 2011. During the first two months of 2013, only 428 Exeos were delivered.

A total of 14,000 of the cars were produced last year, considerably below the scheduled 30,000 units.

Derived from the third-generation Audi A4, the Exeo first was exhibited at the 2008 Paris auto show and hit the market in early 2009.

There is no direct successor planned for the Exeo. SEAT is considering adding to its lineup a new small cross/utility model derived from the Volkswagen Tiguan, but a green light from VW management in Wolfsburg is unlikely before midyear.

SEAT also is considering ending production of its Altea model, which except for its size is similar in style to the Leon and Ibiza. The auto maker could redesign the car, but that is considered unlikely given the contraction of the Spanish new-car market over the past few years.

Shrinking domestic sales already have forced SEAT to cancel a shift for its No.1 line at the Martorell plant, near Barcelona, where the Ibiza is assembled. About 400 temporary jobs have been eliminated.

Carnero believes SEAT could make up for the loss of Exeo production by building more Audi Q3 CUVs, increasing output from the current 100,000 units annually to 114,000. But with sales down industry-wide throughout Europe, it appears unlikely Audi would OK a boost in Spanish production.

SEAT continued to post red ink in 2012, though it did cut operating losses 30.6% to €156 million ($202 million) on a 20.2% increase in revenue to €6.5 billion ($8.4 billion). About 321,000 cars were sold in 2012, down 8.3%, but production increased 18.8% due to the addition of the Audi Q3.