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Cost
cuts and sales of models with higher trim levels helped Seat
increase first-half operating profit to 93 million euros ($104
million) from 52 million a year earlier, its best-ever six-month
result.
The new Ateca, Seat's first sport-utility vehicle being rolled
out across Europe this year, will help second-half sales and
volume should grow further in 2017 thanks to revamped versions
of the Leon and Ibiza models and the launch of the Arona,
another SUV, Chief Executive Luca de Meo told Reuters.
The Ateca, competing with models from rivals including Renault <RENA.PA>
and Hyundai Motor <005380.KS> in the fast-growing compact SUV
segment, has attracted 21,000 orders this summer with many
customers new to the brand, de Meo said.
"It changes the game for us, it gives us completely different
credibility" on profitability, the CEO said in an interview on
Friday at the Paris auto show.
"If we have a bit of luck and markets don't collapse, I see the
next three years as profitable years."
Seat last year narrowed its operating loss to 10 million euros
from 127 million in 2014, according to Volkswagen's (VW) annual
report.
VW, which bought Seat in 1986 to increase its exposure to the
then fast-growing Spanish market, has long tried to overcome the
losses caused by under-utilized capacity at Seat's Spanish
factory in Martorell.
It has cut management and manufacturing costs and shifted
production of Audi's Q3 SUV to Martorell.
De Meo said Seat may offer an electric car by about 2020 as
parent VW pushes zero-emission technology across the 12-brand
group.
(Editing by Ruth Pitchford)
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