VW wants to present Seat brand in China

Francisco Javier Garcia Sanz, a member of the carmaker's management board, announced VW's policy for Seat at a press conference.

Volkswagen Group currently markets the Audi, Lamborghini, Skoda and VW brands in China. Seat, which is headquartered in Martorell, Spain, specializes in affordable compact cars.

VW is trying to move the brand somewhat upscale with a lineup of sporty cars.

According to a report by IHS Global Insight, VW will initially import Seat models into China, and then launch production at its Foshan assembly plant, which will be completed in 2013.

VW's joint venture with China FAW Group Corp. will run the Foshan plant, which is located in southeast China's Guangdong province.

While VW Group's other brands have prospered in China, a successful start for Seat is not assured. Elsewhere, the brand has struggled. In 2010, Seat lost 311 million euros on a 0.8 percent increase in sales to 340,000 cars. According to IHS, VW will close the Seat brand by 2015 if it fails to become profitable.