Volkswagen Delays Launching Cupra Model in America

The Volkswagen Group had set its sights on bringing Cupra to america by the tip of the last decade. Nonetheless, the plan introduced a couple of 12 months in the past is not in place, because the Spanish automaker has “strategically determined to postpone” its entry into the U.S. till after 2030. Why? It cites “ongoing challenges inside the automotive business and in gentle of evolving market dynamics.”

The obscure assertion doesn’t point out tariffs, however the risky scenario within the U.S. seemingly performed a job within the VW Group’s choice to delay launching the Cupra model. Initially, the corporate had supposed to carry an electrical Formentor to America, together with a bigger electrical SUV. However not all autos had been purported to be EVs. Former SEAT and Cupra CEO Wayne Griffiths advised us late final 12 months that hybrids, plug-in hybrids, and pure gasoline automobiles had been additionally a part of the plan.

The technique included opening 20 so-called Cupra Metropolis Garages with the assistance of Penske throughout the nation, focusing on the East and West Coasts in addition to Solar Belt states. Somewhat than replicating its European lineup, Cupra aimed for a U.S.-specific portfolio, together with a regionally constructed car. The fashions had been anticipated to be bigger and have a definite design language tailor-made to American tastes. The medium-term objective was to promote 100,000 models yearly.

Cupra emphasizes that it’s solely delaying the launch, not canceling it: “We’re not stopping, simply suspending our U.S. launch and can proceed to observe market developments within the coming years to find out the perfect timing and method, aligned with the model’s long-term imaginative and prescient,” mentioned Sven Schuwirth, Govt Vice-President for Gross sales, Advertising and marketing and Aftersales at SEAT.

In the meantime, Cupra had its greatest first half of the 12 months to this point, delivering 167,600 models, up 33.4 % in comparison with the identical interval final 12 months. Since being spun off from SEAT in 2018, the model has bought greater than 900,000 autos and expects to achieve the one-million milestone within the coming months. Cupra is now outselling SEAT, which suffered a 21.4 % decline to 135,000 models, or 32,600 fewer automobiles than the youthful model.

Cupra’s announcement follows an analogous choice by Renault, which had deliberate to carry its Alpine sub-brand to the U.S. by 2027. Throughout a current earnings name, Renault CFO and interim CEO Duncan Minto attributed the delay to ongoing uncertainty within the American market: “Contemplating what is going on on within the U.S. for the time being, I do not assume it is the best time to spend cash.”