« Reply #123 on: 21 September 2011, 05:04 »
That's all true but at the same time Skoda are doing great and are not being dumbed down by VW. SEAT have been losing money for ages. And one thing company bosses don't like more than competition is losing money. I think they can't find their USP - sporty? cheap? not german? 
Small detail is that employment laws in Spain are very strickt and that limits the flexibility of the plant. Once hired it's almost job for life. In that environment it's difficult to come up with something new as it's the same people doing the same job for years.
Plus let's not forget VW plants are working O/T and I'm sure they would welcome more sales from SEAT. VW/Audi are getting expensive in the UK (or already have!) but in Euro zone countries they are good value for money as the prices haven't changed much recently. I was actually surprised to find out the other day that "old" S3 is still more expensive in Germany than the new Golf R. Makes it easy to choose. 
Good point about Skoda. I think the thing with Skoda is they have never had any designs that have seriously threatened VW and have always been the thinking man's VW with a quiet but competant image.
Interesting point about Spanish employment laws, I didn't know that and it must have a bearing on VWs relationship with SEAT in that case - if SEAT aren't doing the business I can see VW wanting to sell them and be shot of a potentially expensive lame duck workforce. No wonder the build quality of SEATs has been called into question in the past then if the workers think they can get away with being a bit sloppy; that reminds me of the British car industry ... enough said there. SEAT's biggest enemy (aside from badge snobbery and some ugly cars) in the UK has been their dealers.
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