Months after Volkswagen revealed interest in bringing its sporty Cupra brand to the U.S. market it has taken a critical step closer to making that happen before the end of the decade. It’s begun talks with the Penske Automotive Group which could partner on the launch.
An all-electric version of the Cupra Formentor will be one of the two debut models that might come to the U.S.
Even as it moves ahead with the launch of its all-new Scout brand, Volkswagen is pursuing a route that could bring another one of its many marques to the U.S. by the end of the decade – the Spanish-based Cupra.
The German automaker first expressed interest in expanding the reach of the sporty Cupra brand last March. At the time, Automotive News reported VW was looking to develop its own distribution network. Now, however, it appears to be looking at an alternative approach.
Cupra CEO Wayne Griffiths said it is developing “a new distribution model,” in a November 22 news release. And that relies on a potentially powerful new partner, the Penske Automotive Group.
What’s a Cupra
Cupra boss Wayne Griffiths wants to expand globally, starting with the U.S.
Volkswagen holds one of the auto industry’s largest collection of brands, including the flagship VW marque, entry-level Skoda and Seat, as well as high-line Audi, Lamborghini and Bentley. It will bring out the first Scout products in 2026.
It added yet another name to the list in 2018 when Cupra debuted as a sub-brand of Spanish-based Seat. Cupra’s current product line includes a variety of Seat variants, including the Born and Tavascan EVs, as well at the Leon compact hatchback.
But where Seat is Volkswagen’s based product line, the goal is to move it significantly up-market. The first step in that direction came with the 2020 launch of the Formentor. It is the first Cupra product line not based on a Seat product, noted Automotive News.
Though the end of October, the Cupra brand sold 180,852 vehicles in Europe, reported Dataforce. That was a 10% year-over-year increase. But it has already begun an international expansion program with its first foreign markets in places like Australia and Mexico.
What next
A standalone Cupra dealership being built in Spain. The automaker may adopt a different distribution model in the U.S. (Photo courtesy: Wikipedia.)
To build a U.S. presence for Cupra, VW has already taken several important steps. It reassigned the managing director of its German arm to the newly formed Cupra USA.
It has begun looking for a U.S. headquarters location and is working up model line plans – details on both to come later, VW said.
Possibly the most significant step comes next as it ramps up talks with the Penske Group. Exactly what that means wasn’t disclosed, Griffiths only noting that, Penske brings “leadership in the industry and experience with the Volkswagen Group mak(ing) this a very promising potential partnership.”
More VW News
About Penske
Penske Auto Logo
The Penske Automotive Group is an arm of Penske Corporation,itself founded in 1969 by former race car driver, now multi-team owner and mega-businessman Roger Penske.
Penske Automotive operates the third-largest dealer network in the U.S., according to an annual listing put together by Automotive News. It currently owns 207 showrooms in the U.S. and Canada. AN reports the American dealerships delivered 229,942 vehicles in 2023.
If talks prove fruitful with VW, and were Penske to oversee marketing of Cupra products it would mark the group’s latest foray beyond just acting as a retailer. Penske Automotive handled initial sales duties for Mercedes’ short-lived U.S. Smart Car brand. Penske also attempted to purchase Saturn from General Motors after GM prepared to drop the brand from its portfolio in 2010 as the automaker emerged from bankruptcy. That project fell through.
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