Ailing Seat is Holding VW Group Back, Expansion to the East May Prove its Salvation

In sharp contrast to almost every other mainstream European manufacturer, the VW Group is reporting record sales and profits. Whereas main rivals PSA Peugeot Citroen and its new partner Opel, along with Fiat and Renault all face the consequences of the Euro crisis, VW’s brands are doing better than ever thanks to the group’s successful global strategy.

The ever-growing Germans do have a thorn on their side, though: Seat, which is the sole money-losing brand in VW’s portfolio, having burned through €1 billion (US$1.24 billion) since 2008 and making a profit only once in the past decade.

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