SEAT and Volkswagen Prioritize Spanish Suppliers for Electric Vehicle Project

SEAT and Volkswagen Prioritize Spanish Suppliers for Electric Vehicle Project

(IN BRIEF) SEAT S.A. and the Volkswagen Group have taken a significant step towards localizing the production of electric vehicles by allocating over 75% of the material costs for the Small BEV project to suppliers based in Spain. This move aims to reduce the global supply chain’s length and source components for electric vehicles and innovative technologies from domestic providers. SEAT S.A., leading the Small BEV cluster within the Volkswagen Group, is set to manufacture a range of electric cars in anticipation of strong growth in this segment. The company is investing €3 billion to transform its Martorell plant into a production hub for electric vehicles, with production starting in 2025. The project aligns with Spain’s ambition to become a European hub for electric vehicle manufacturing, and SEAT S.A. is committed to working with suppliers who share its sustainability goals and standards.

(PRESS RELEASE) MARTORELL, 10-Nov-2023 — /EuropaWire/ — SEAT S.A. and the Volkswagen Group have assigned more than 75% of the Small BEV project’s material costs to suppliers located in Spain to produce fully electric vehicles at its Martorell plant and Volkswagen’s factory in Navarra. With this decision, both companies aim to shorten the global supply chain and obtain components for electric vehicles and innovative technologies, among others, from local sources.

SEAT S.A. gathered more than 100 of its main providers to discuss the journey towards electrification and encourage working together to overcome the challenges of the future of mobility. The company is leading the Small BEV cluster on behalf of the Volkswagen Group and will manufacture a family of cars in a segment expected to experience strong growth in the coming years.

“This is a key moment for our sector. We are committing significant resources to move forward with the transformation of the Spanish automotive industry into a European electric vehicle hub. Our ambitious electrification plan will contribute to maintaining the country’s competitiveness and democratising access to sustainable mobility in Europe with electric cars made in Spain,” said Wayne Griffiths, CEO of SEAT and CUPRA.

SEAT S.A.’s Martorell plant is undergoing a transformation process with a 3-billion-euro investment to produce electric cars and become one of the Group’s production hubs for electric vehicles. SEAT S.A.’s main factory, which is celebrating its 30th anniversary this year, will produce fully electric cars from 2025, starting with the CUPRA Raval, the first Small BEV to roll out of the plant’s production line. This transformation is also providing an opportunity to reduce emissions aligned with the company’s decarbonisation goals.

Cooperation to overcome challenges

At the meeting, SEAT S.A. underlined the strategic importance of the Small BEV project for the company and Spain and highlighted the need to transform its supplier ecosystem for the project to be successful. Among other challenges, SEAT S.A. emphasized the relevance of cooperating with suppliers to ensure quality, meet agreed timelines, achieve competitive costs, increase transparency and anticipate potential incidents to ensure deliveries.

“We need the strong commitment of manufacturers and suppliers in the transformation of our industry towards electrification to overcome all the challenges of this new era. By leading the development of the Small BEV cluster for the Volkswagen Group, we are facing a great opportunity to reinforce our supplier ecosystem in Spain and the EU. Together, we will jump to the next level through electrification,” stated Marc Riera, SEAT S.A.’s Executive Vice-President for Purchasing.

In line with its commitment to sustainability and the goal to reduce emissions over the entire production cycle, the company will prioritise suppliers and partners who share the same purpose. SEAT S.A.’s ambition for the Small BEV cluster is to work with over 85% A-rated suppliers, the highest qualification given by the S-Rating (Sustainability Rating), which evaluates and encourages the commitment of suppliers to sustainability. This tool ensures the procurement of companies that are aligned with the compliance and sustainability standards set by the Volkswagen Group for its business partners.

To increase the company’s logistics and production processes resilience, close to 90% of the Small BEV suppliers have already been integrated into the Control Tower, SEAT S.A.’s management system that offers real-time information of the location of more than 10 million parts required daily for the manufacture of vehicles. This monitoring centre, inaugurated in 2019 at the Martorell plant, allows the company to anticipate supply incidents, reduce order delivery times and optimize material transportation itineraries, thus contributing to lower CO2 emissions.

Leading the electrification of Spain

Through the Future: Fast Forward project and the Small BEV cluster, SEAT S.A. is leading the electrification of Spain’s automotive industry to transform the country into an electromobility hub in Europe. Volkswagen Group, SEAT S.A., PowerCo and the Future: Fast Forward project partners are investing 10 billion euros, the largest single industrial investment in Spanish history, to electrify SEAT S.A.’s Martorell and Volkswagen’s Navarra sites and to build the first battery cell gigafactory in the country located in Sagunto, Valencia as well as the creation of a complete supplier ecosystem.

In addition, SEAT S.A. will invest an additional 300 million euros to build a battery system assembly plant in Martorell. This facility will be used to assemble the cells that PowerCo will manufacture at the gigafactory in Sagunto, Valencia and will ensure more than 400 direct jobs and more than 100 indirect jobs.

Media Contact:

Ezequiel Avilés
Strategic Communications & Reputation
M/ +34 646 303 738
ezequiel.aviles@seat.es

David Pacheco
Strategic Communications & Reputation
M/ +34 616 059 107
david.pacheco@seat.es

SOURCE: SEAT, S.A.