Despite new Trump tariffs targeting imported autos and auto parts, Volkswagen intends to move ahead with plans to launch the sport Cupra brand in the U.S., company officials confirmed during a media event in Miami. But the move across the Atlantic may not happen until the very end of the decade – and Cupra may wind up moving at least some production to the U.S. by then, Headlight.News reports.
An all-electric version of the Cupra Formentor will be one of the two debut models that might come to the U.S.
One of Europe’s newest automotive brands could soon make a jump across the Atlantic, the Volkswagen Group confirming earlier reports that it wants to introduce Spanish-based Cupra to American buyers.
Confirmation of that plan by VW officials this week might have seemed ill-time considering the Trump administration’s crackdown on automotive imports with 25% tariffs expected to dramatically slow demand. But Cupra planners appear to be playing the long game, with the U.S. launch not expected to happen much before 2030.
Meanwhile, Cupra is now expected to produce some, if not all, of the products earmarked for the U.S. at a plant somewhere in North America. Depending upon what happens with the current auto tariffs that could render them moot by the time the sporty brand finally lands in American showrooms.
What’s a Cupra?
Cupra boss Wayne Griffiths wants to expand globally, starting with the U.S.
Cupra is one of two VW Group brands based in Spain – the other being the entry-level SEAT.
It’s not quite a start-up, the name first being used by SEAT as a motorsport marque in 1996. It was spun off as a standalone brand in 2018. Since then, Cupra has sold about 800,000 vehicles worldwide. Volume last year only was 248,000, a 7.5% year-over-year gain,
Its products are more fashionable and sporty than SEAT and the mainstream Volkswagen brand. The flagship Cupra Formentor offering several powertrain options making up to 390 horsepower. But it’s also getting into the electrified drivetrain space with like the battery-powered Born crossover and Raval hatchback.
Plenty of challenges
The first all-electric Cupra, the Born.
Despite its rapid growth, as well as the backing of deep-pocketed VW, not everyone is convinced Cupra can make it in the U.S. – or that it even will complete the promised launch. There certainly are plenty of challenges.
The U.S. market has traditionally not been kind to newcomers, though the Japanese and Koreans are now well-established players. But a number of European brands have pulled out over the years, including French powerhouses Peugeot and Renault, both failing to follow through on one-time plans to relaunch in the States. Fiat did make a return after pulling out in the 1990s, but it today generates volume that amounts to little more than an asterisk on the sales chart. More than a few analysts expect that parent Stellantis could dump Fiat once a new CEO takes over for the departed Carlos Tavares.
Then there are the tariffs that Trump recently put in place. At 25% they’re forecast to result in a sharp drop in overall U.S. new vehicle demand – especially for European products. Several manufacturers, including Jaguar Land Rover, currently have put shipments to the U.S. on hold.
But Sven Schuwirth , the marketing and sales chief for both Seat and Cupra, was optimistic during the Florida backgrounder. “We are optimistic that the world will somehow balance back to a free trade agreement between the different continents, or on a level which is acceptable,” he told Automotive News.
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What products might we see
Like the rest of the Volkswagen Group brand family, Cupra has been moving to electrify its line-up. The Born, the first EV, shares the same platform as the Volkswagen ID.4. Still more all-electric models are in the works.
CEO Wayne Griffiths previously said he wants to start out with two EVs. But Cupra officials indicated they plan to react to consumer demand, whether that might lead. Griffiths has signaled the U.S. mix would likely include internal combustion engines, various hybrid technologies, and EVss.
Meanwhile, the automaker is looking at ways to localize production – at least somewhat. The executives indicated various VW Group plants in the Americas could be tapped into. The VW brand operates a large factory in Chattanooga, Tennessee, as well as Latin American facilities. Audi has an assembly plant in Mexico. And the even newer Scout brand plans to start rolling out a mix of EVs and extended-range models from a new plant in South Carolina.
New distribution strategy
The long-lived dealer franchise system is facing plenty of challenges these days, notably from Tesla which adopted a factory-owned store model. Slate Auto, the start-up partially funded by Amazon founder Jeff Bezos, is expected to use that online shopping network to help move its metal.
As for Cupra, officials have signaled they also are looking at alternative models, though it has yet to say which way it is leaning.
A year ago, brand boss Griffiths indicated Cupra will likely launch first along the so-called “Smile Belt,” along the East and West Coasts and the Sunbelt region where sporty models and EVs currently have their strongest demand.
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