SEAT Report First Quarter Losses But Hope To Finish 2021 In Profit
Seat has reported a loss of €36m (£31.2) in the first three months of 2021, which is 25 per cent less than in the corresponding period of the previous year, of course, due to the result of the pandemic, and the global shortage of semiconductors which led to lower production levels, and consequently, sales.
The Volkswagen group itself seems to be one of the companies handling the pandemic best, reporting an eightfold increase in profits in the first quarter, with a net profit of €3,244m (£2,820m), while turnover jumped up 13 per cent to €62,376m (£54,235m), mainly thanks to the Chinese market, growing its production by 432.3 per cent, with 4,812m units.
With its focus on the European market, Seat has struggled due to the poor market performances in Spain and the United Kingdom, with sales dropping by 3.7 per cent, to 125,000 cars, although – thanks in the main to the success of the new Cupra sports model, whose sales increased by 127.6 per cent – the turnover increased by 11.5 per cent, reaching €2,851m (£2,479m).
A source at the company said, “The goal in 2021 is to achieve a positive operating result thanks to the best product range in its history”, which will depend on the success and speed of the vaccine rollout, and the return to normal of the supply in semiconductors.
Sales are expected to increase once the new electric Seat León and Tarraco hybrids, plus the Cupra León and Formentor hybrids, hit the market, with the Cupra Born also scheduled to be launched in the second half of 2021, as reported by lavanguardia.com.
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