Cupra Enters the U.S. Market
“Cupra will enter the U.S. market by the end of the decade, with the BEV [battery electric vehicle] Formentor and a bigger electric cross-over SUV.” That’s the text on the slide behind SEAT S.A. President and CEO Wayne Griffiths as he discussed a global expansion of a brand that SEAT has been signaling for a while. However, for many Americans, a lack of name recognition (with either Cupra or the SEAT brand that birthed it) might mute the excitement. What’s Cupra, and should we care that its CEO wants to sell its cars in America?
The Cupra Story
Cupra is a relatively new brand whose backstory is strikingly similar to Polestar’s. Polestar has roots in Volvo motorsports and gained notoriety as a performance tuner of Volvo street vehicles. Conversely, Cupra began as a high-performance trim of various SEAT cars, with the name being a portmanteau of “cup” and “racing.” It debuted on the SEAT Ibiza, a hatchback developed after Volkswagen acquired the Spanish brand, based on the Polo.
SEAT had previously license-built various Fiat products but starting in the 1980s, VW began buying shares in the company, ultimately absorbing it as a subsidiary in 1990. Since then, SEAT has focused on producing sporty, restyled vehicles built on Volkswagen platforms.
Until 2018, SEAT spun off Cupra as its own performance sub-brand, initially selling altered versions of existing SEAT products. Eventually, it received a stand-alone vehicle, the Formentor SUV, which is still built on a Volkswagen platform but doesn’t have a SEAT analog. Cupra has sold EVs since 2021, including the ID3-based Cupra Born and the Tarascan coupe, introduced in 2023.
What Does Cupra Want to Sell in America?
Cupra believes its offerings “will reflect what customers are looking for in the United States.” This, apparently, will mean focus on crossovers. Griffiths mentioned two models, a battery electric version of the Formentor coupe-like SUV and a larger electric crossover. The current Formentor is not a BEV, although it is available in a plug-in hybrid version. It features a size comparable to the Mazda CX-30 and positions itself against rivals like the Volkswagen T-Roc and Audi Q3 Sportback in Europe.
Where Will U.S.-Market Cupras Be Built?
Although it’s still early days, Cupra indicates it will produce cars in North America (including Mexico) to leverage the USMCA free-trade agreement among the U.S., Canada, and Mexico. Other plants may be utilized; Cupra certainly has time to decide on which of Volkswagen Group’s North American facilities to leverage for production.
Where Will the Cupras Be Sold?
Similar to a few other recent EV vehicles with limited availability, Cupra is already mentioning limited distribution for the Formentor and other BEVs to select states. Griffiths highlighted the Sun Belt, as well as the East and West Coasts, as areas where Cupra might find appeal. The vehicles will be sold “through a new distribution model”—which appears to be a variation of direct sales, a method that has proven challenging for other EV startups. Nonetheless, Cupra may achieve more favorable results.
Not the Only VW Game in Town
Don’t forget about Volkswagen’s other ambitious efforts in the U.S. market: Scout. Volkswagen has revived the old International-Harvester model as its own brand and is planning to build electric SUVs and pickups in the U.S. that emphasize their American roots.
