VW's Seat seeks return to profit with new models, cost cuts
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
A lighted billboard reads "Think New" at the introduction of the new Volkswagen electric car on media day at the Paris auto show, in Paris, France, September 30, 2016. REUTERS/Benoit Tessier
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
By Andreas Cremer
PARIS (Reuters) - Volkswagen's
Cost cuts and sales of models with higher trim levels helped Seat increase first-half operating profit to 93 million euros ($104 million) from 52 million a year earlier, its best-ever six-month result.
The new Ateca, Seat's first sport-utility vehicle being rolled out across Europe this year, will help second-half sales and volume should grow further in 2017 thanks to revamped versions of the Leon and Ibiza models and the launch of the Arona, another SUV, Chief Executive Luca de Meo told Reuters.
The Ateca, competing with models from rivals including Renault
"It changes the game for us, it gives us completely different credibility" on profitability, the CEO said in an interview on Friday at the Paris auto show.
"If we have a bit of luck and markets don't collapse, I see the next three years as profitable years."
Seat last year narrowed its operating loss to 10 million euros from 127 million in 2014, according to Volkswagen's (VW) annual report.
VW, which bought Seat in 1986 to increase its exposure to the then fast-growing Spanish market, has long tried to overcome the losses caused by under-utilized capacity at Seat's Spanish factory in Martorell.
It has cut management and manufacturing costs and shifted production of Audi's Q3 SUV to Martorell.
De Meo said Seat may offer an electric car by about 2020 as parent VW pushes zero-emission technology across the 12-brand group.
(Editing by Ruth Pitchford)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Brazilian authorities build temporary wall to quell deadly prison clashes
- Foxconn CEO says investment for display plant in U.S. would exceed $7 billion
- UK's May looks to boost technology industry as she eyes life after Brexit
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!