Volkswagen's SEAT sees potential 2002 loss

FRANKFURT, Sept 29, 2002; Reuters reported that carmaker SEAT, a division of German giant Volkswagen AG , said it would be difficult to post a profit this year after problems with the production of its new Ibiza model, a German magazine reported on Sunday.

"Our figures at the moment are below last year's, as we had problems switching over to the new Ibiza," Andreas Schleef, Chairman of the unit told Automobilwoche in an interview.

"We won't achieve our targets this year - we can't make up for the lost 25,000 units," said Schleef, adding that while the firm was trying to avoid a loss it would be "very difficult to show a profit."

Last year SEAT posted sales of 6.3 billion euros ($6.16 billion) with an operating result of 63 million.

In the second quarter of 2002 the Volkswagen group posted sales of 22.8 billion euros, down one percent from the period a year earlier, and operating profit of 1.4 billion euros. Pre-tax profit was 1.27 billion.

Schleef said he saw cost savings potential in the production, which was not flexible enough, the magazine reported. He said the firm suffers from a high absentee quota.

On Thursday SEAT said it plans to transfer about 10 percent of the production of its Ibiza model to Slovakia from its plant near Barcelona in Spain, because of a failure to reach agreement with Spanish unions on working more days to meet demand for the vehicle, a Spanish news agency reported.

New SEAT Ibiza Excitement and Passion

The Ibiza has been SEAT's best-loved model for many years, and with the fifth generation all new Ibiza the best has just got better. On sale from 3 May 2002, the new Ibiza comes in three and five-door hatchback versions, with three equipment levels (Stella, Sport and Signo), and five engines to choose from. Prices start at just 113,990 for the Ibiza 1.2 Stella 3 door rising to 122,840 for the top of the range Ibiza TDi 130 bhp Sport.

Totally new from the ground up the Ibiza's distinctive, modern look, reminiscent of recent SEAT concept cars, disguises the fact that it is longer, wider and higher than its predecessor. It is actually one of the largest cars in its class and all this extra space has been converted into comfort with more front and rear passenger legroom, shoulder room and a bigger boot.

The new Ibiza features five power plants, three petrol and two diesel, ranging from a new 1.2 litre 3-cylinder 64 bhp petrol engine to the most powerful diesel engine available in any supermini, the 130 bhp 1.9 TDi linked to a 6-speed gearbox. Twin airbags, radio-CD player, electric front windows, electro-hydraulic power steering, remote central locking, hydraulic, pollen filter and height and reach adjustable steering wheel are just some of the items that are standard across the entire range.

A dramatic 'face' with an enlarged grille that extends outwards to envelope the headlights sets off the Ibiza's purposeful silhouette. The high waisted, wedge-shaped side profile terminates in a spoiler at the rear tip of the roof - a traditional detail on previous Ibizas. The rear styling is dominated by high mounted, stylised light clusters, with a horizontal design that lowers and widens the look of the body.

Despite its compact look, the new Ibiza is longer (by 77 mm), wider (by 58 mm) and taller (by 19 mm) than the model it replaces. The benefits can be found in the rear of the passenger compartment, where legroom has increased by 56 mm, and in a bigger boot which now has a luggage capacity of 267 litres, 17 more than before.

The interior is dramatically different with the cockpit adding to the sporty feeling. The driver faces a set of tubular dials on the instrument panel that echo the design of the headlamps and indicator lights. Two large dials containing the tachometer and speedometer are flanked by two smaller dials showing the temperature and fuel level. Large air vents at each end of the dashboard are fully adjustable, while the heating/ventilation and radio controls are all within easy reach. The driver's seat is fully adjustable while the steering wheel can be adjusted for height and reach.

Range

The fifth generation SEAT Ibiza is available in three trim and equipment levels: Stella, Sport and Signo. Right from the entry-level model the equipment levels are extremely generous and represent excellent value-for-money.

Stella. Standard on the entry level model are 185/60 tyres on 14 inch wheels, full size spare wheel, body coloured rear spoiler, black exterior side moulding, tinted glass, anti-theft roof aerial, high level brake light, remote controlled central locking, electro-hydraulic power steering, front electric windows with anti-trap, height and reach adjustable steering wheel, twin front airbags, radio/CD with eight speakers, split rear seat with headrests, front seat belts with pyrotechnic pre-tensioners, Isofix anchoring points far child seats and height adjustable driver seat.

Sport. In addition to the equipment on the Stella model, the muscular Sport adds electrically controlled and heated exterior mirrors, front foglamps, twin headlamps, on-board computer, 1 inch alloy rims, ABS and EDS, sport seats, instrument panel dials with white background and leather covering far the steering wheel, gear lever knob and handbrake cover. In addition, the Sport has air-conditioning as standard.

Signo. In addition to the equipment on the Stella model, the luxury Signo version adds electrically controlled and heated exterior mirrors finished in body colour, front foglamps, twin headlamps, alarm, electric rear windows with anti-trap (on the 5 door version), onboard computer and height adjustable front passenger seat.

The new Ibiza offers as options, air conditioning, climate control and ABS with TCS.

Prices: The new Ibiza prices are competitive and represent excellent value for money. The Ibiza 1.2 Stella 3 door model starts at 213,990, with the 5-door version at 214,440. The 1.4 75 bhp 5 door in Signo spec starts at 215,940 while the 1.4 100 bhp Sport 3 door is 217,990. Diesel power starts with the 1.9 SDi 64 bhp Stella at 216,440. The powerful 130 bhp 1.9 TDi Sport is 222,840 in 5 door form. These list prices do not include dealer delivery and related charges.

The SEAT Ibiza is covered by a 2 year unlimited mileage warranty, 3 year paint and 12 year corrosion perforation warranties. SEAT Assistance provides roadside assistance for 2 years including European cover. Inspection services including oil change are required at 10,000 miles or annually. The major service interval is 20,000 miles.