The U.S. is getting another new automaker, but not that soon.
Spain’s SEAT brand has announced that its Cupra upscale performance division will begin selling vehicles in the U.S. before the end of the decade.
Both automakers are part of the Volkswagen Group and use platforms shared with VW, Audi and other brands.
The Cupra name was originally used by SEAT’s motorsports division, but was launched as a standalone brand in 2018 and has seen rapid growth in Europe.
Its lineup currently features six model lines that are priced in the $35,000-$70,000 range, putting it adjacent to Audi.
SEAT and Cupra CEO Wayne Griffiths said in the automaker’s recent earnings report that an electric version of its Formentor compact SUV and a new larger electric model will be the first offered in the U.S., where it will initially focus sales on the coasts and Sun Belt region.
Cupra recently launched its first EV, the Tavascan.
Griffiths also said that the larger model “will be produced at Volkswagen Group factories in the North America region, including Mexico.”
North American production is required for vehicles to qualify for federal clean energy tax credits on purchases.
The Volkswagen Group operates factories in Puebla and Silao, Mexico, along with one in Chattanooga, Tenn., where the VW ID.4 is built.
It is also constructing a new factory in South Carolina for the upcoming reboot of the Scout brand as an all-electric SUV and pickup automaker, and Audi is already looking at manufacturing at least one model there.
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This story has been updated with ID.4 production details