Cupra, SEAT's sports brand, is in talks with Penske Automotive Group for its entry into the US market in 2030. Penske, which already has agreements with the VW Group in North America, is a distribution giant in the US market, also operating in Germany, the UK, or Italy, with 29,000 employees worldwide. In the first nine months of 2024, it generated $22.7 billion in revenue.
Cupra made the announcement following the visit of its CEO, Wayne Griffiths, to the Los Angeles Auto Show this week, where he presented two models: the successful Formentor and the recent Terramar.
The plan to enter the US market was put on the table two years ago. It represents "the most ambitious expansion" in its strategy to "become a global brand," said Griffiths, who believes Penske "is the best possible partner for this venture."
Outside of Europe, Cupra is present in Mexico, Turkey, or Australia, which was the first major step towards globalization. China, however, is not being considered due to the high entry cost, despite the Tavascan electric model being manufactured there. In fact, Volkswagen sells it there as part of its range.
Cupra became its own brand in 2018 and has sold 750,000 units, being one of the fastest-growing manufacturers in Europe. In 2023, it sold 230,000 cars (+50.9%) worldwide, and the profitability of these operations was crucial for the parent company (SEAT SA) to achieve historic operating profits of ¤645 million, nearly 20 times more than the previous year.
In the medium term, the goal is to reach 500,000 vehicles, and by 2025, it could surpass Seat. In 2023, it fell short by 58,000 vehicles, with the Formentor (120,800 deliveries) being the most successful model of the two brands.
The US landing will take place in "key states aligned with the brand." This includes coastal states and others in the 'Sun Belt' like Arizona, New Mexico, Texas, or South Carolina.
Regarding the model range, there have been changes from the initial plans, which indicated a need for larger cars more in line with local customer preferences, designed on a new platform and all 100% electric. Now, "the offering is expected to include combustion, plug-in hybrids, and 100% electric models." One possibility is the electric Formentor expected to be launched in 2027.
In terms of production, to leverage synergies and reduce costs, it is confirmed that at least one of these vehicles will be assembled at one of Volkswagen Group's plants in Mexico (Puebla and San Luis Potosí) and the USA (Chattanooga). In this regard, it remains to be seen if Donald Trump goes beyond threats to impose tariffs on cars imported from Mexico.
While Cupra seeks to expand, Stellantis Group could have mixed outcomes in Spain. On one hand, it is expected to announce, finally, the allocation of a new family of small electric cars to be produced in Vigo and Figueruelas, in addition to the gigafactory for batteries it will jointly operate with the Chinese CATL near Zaragoza.
However, there are also concerns for Madrid. According to French media, the company is considering assigning the next generation of Citroën C4 and C4x, both combustion and electric, to the Kenitra plant in Morocco to reduce costs.
This would leave the Villaverde factory empty by 2028, necessitating the search for new products. The factory was previously in doubt. For example, during the PSA Peugeot-Citroën era, it was not closed because it was too small to achieve the necessary cuts, although today it is well-positioned and considered. "We do not comment on speculations," Stellantis sources told this newspaper.