SEAT (Sociedad Española de Automóviles de Turismo), created in 1950 by the will of the Spanish government with the assistance of FIAT and was managed by the Instituto Nacional de Industria. It was maintained until in 1982 pennies the aegis of the Italian giant FIAT, and became since 1988 the Spanish subsidiary company of the German group Volkswagen AG.
It is in 1949 that the Spanish State asks for the assistance of FIAT, already present in Spain for the construction of fighter plans, to create a national auto industry. SEAT is then created officially in 1950 thanks to the association of the Instituto Nacional de Industria (INI), a banking pool and especially with the Italian manufacturer FIAT. The first buildings are built with Barcelona, Zona Franca and the tools of the production lines, coming straight from FIAT Italy from which will leave, on November 13rd 1953, the first model SEAT 1400, certified copy of FIAT 1400, which at the time will be assembled only at the rate of 5 vehicles per day before reaching a threshold of production of 10.000 vehicles per annum in 1956. Very quickly, since 1957, other models of the immense range FIAT will come to supplement the Seat offer, as the Seat 600 which will be built with more than 800.000 specimens until 1973.
At the beginning of the Years 1970, SEAT becomes the first Spanish industrial company and is placed at the eighth rank of the European manufacturers, with a production of 300.000 vehicles per annum and exports of almost 80.000.
In 1981, following a serious disagreement with the Spanish State about the essential recapitalisation of Seat, Italian manufacturer FIAT decides to yield its participation of 37,5% which it held in the capital of SEAT to the INI. As of the following year, the Spanish company, without resources and seeing its chutter activity strongly, develops a policy of partnership with Volkswagen by signing industrial and commercial cooperation agreements with the German manufacturer who will make him manufacture under license, of the models intended for the Spanish market.
SEAT will market the vehicles of the German mark in Spain, Volkswagen will agree to delocalize part of its production in the Spanish factories. The Spanish State will be obliged to inject more than five times the amount what it should have invested with FIAT. This policy shows a takeover of SEAT by its partner: in 1986, Volkswagen AG acquires 51% of the capital of SEAT, then changes this share to 75% as of the end of this same year before filialiser at 100% in 1990. The group invests then in a new production site, with Martorell, which is today most modern and most productive of Spain (the productivity is there of 20 vehicles per day by employee).
However, in spite of these assets and the business success of certain models, in particular the Toledo and the Ibiza, SEAT is an overdrawn company. Following a loan of the European Investment Bank and assistances of the Spanish government in 1993, which during two years will maintain a hard conflict with the commission the European Union of an extreme vigilance with respect to the government aid, Volkswagen agreed to launch a capital spending program in order to rectify the situation of its subsidiary company.
This policy bore its fruits insofar as after a light benefit in 1996, the rectification were confirmed in 1997, SEAT carrying out a clear benefit of 430 franc million for a turnover of 30 billion. These good performances convinced the head office to again invest nearly 145 billion francs over the period 1998 with 2002 in the Spanish site which represents today nearly 30 p. 100 of the Spanish domestic market.
But this financial rectification was of short duration and VW thinks since the repurchase of Skoda as a Czech Republic, to separate from its cumbersome Spanish subsidiary company. Persistent rumors even circulated at the beginning of year 2006 concerning a transfer of the Seat factories with FIAT.
http://www.seat.fr French Site SEAT
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