Volkswagen announced lats year that it planned to launch the Cupra brand in North America before 2030. But the weather has changed in the industry since then, of course, and so VW has pushed back the North American entry of Spanish marque Seat’s luxury brand until after the turn of the decade.
As reason for the postponement, the company cites “ongoing challenges within the automotive industry” and “evolving market dynamics.” Both oft-spoken phrases within the industry at the moment, let’s agree.
Volkswagen said in March of this year that U.S. import tariffs would not affect its Cupra plans going forward, but that has obviously changed. The just-agreed trade deal between the U.S. and the European Union, which sets tariffs on vehicle imports to the U.S. at 15 percent, may have spurred on the change of heart. We also know the first models Cupra planned to offer on our continent are all-electric, which doesn’t fit well with the priorities of the White House.
The plan for Cupra included marketing the Formentor electric SUV in North America, in addition to another, larger electric SUV. The company also planned hybrid, plug-in hybrid and gas-only models.
The plan further included opening 20 centres across the U.S. in collaboration with the Penske Group dealership network. A model range designed specifically for North America was in the works, and even local manufacturing was part of the project. Ultimately, the goal was to sell 100,000 vehicles per year in North America.
All that to say that Volkswagen’s plan to bring Cupra to North America was – still is – both serious and large in scale. The automaker has chosen to wait for a more favourable context to execute its plan.
Postponement, not cancellation
Indeed, Cupra insists that this is only a postponement and not a cancellation of its entry into North America.
“We’re not stopping, just postponing our U.S. launch and will continue to monitor market developments in the coming years to determine the best timing and approach, aligned with the brand’s long-term vision.”
- Sven Schuwirth, Seat Senior VP, Sales, Marketing and After Sales