An obscure Spanish automobile manufacturer specializing in electric cars is gearing up to introduce its models to the U.S. market—despite uncertainties surrounding tariffs, trade issues, and environmental policies.
Cupra, which is headquartered in Barcelona, has already engaged in discussions with the Penske Automotive Group, the U.S.'s third-largest dealership network comprising roughly 200 locations. Additionally, Penske manages dealerships for numerous brands—such as Cupra—in countries like Australia, Germany, Italy, New Zealand, and the United Kingdom.
"Cupra seeks to make an impact on the United States starting from its origins in Barcelona, introducing vehicles that emphasize both stylish design and high performance to the streets of America," the company stated to the Free Press.
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It might be easier said than done, yet Cupra has managed to make waves in Europe's competitive automotive landscape since being introduced by Volkswagen-owned Seat back in 2018. Traditionally recognized for their functional and budget-friendly vehicles, Seat established Cupra as a performance-oriented offshoot. This move was so well-received by senior executives at VW headquarters that discussions have emerged about potentially phasing out Seat altogether, supplanted instead by the sleeker, more lucrative, and technologically superior Cupra.
Hybrid vehicles and electric cars with a touch of Latin essence
Cupra offers a blend of electric, hybrid, and gas-powered cars across over 40 nations, such as Mexico, where a gasoline-driven Leon compact SUV has a starting price slightly below $37,000. By focusing on performance—Cupra initially began as Seat’s motorsports division—and styling inspired by Barcelona’s legacy as a hub for art, architecture, and design, they aim to distinguish themselves from competitors.
"Cupra enjoys a notable fan base; however, conquering the intricacies of the U.S. market poses significant hurdles," remarked Stephanie Brinley, an S&P Global principal automotive analyst. Due to its vast expanse and substantial populace, introducing a fresh brand in the United States entails considerable costs—both from a geographical standpoint and within consumers’ perceptions.
Cupra has already sold over 800,000 vehicles.
The company's emphasis in the U.S. market will be on stylish, high-end electric vehicles and hybrid models, though Cupra might introduce some gasoline-powered cars as well to boost sales and service traffic.
As the inaugural brand established within the Volkswagen Group, our mission is to provide a fresh option for America’s upcoming automobile purchasers," the declaration went on. "Placed between mainstream and luxury markets, we do not adhere to conventional norms or historical roots; instead, we stand as an unorthodox upstart.
The brand intends to start sales in 20 strategically selected states that align well with the Cupra brand’s vision.
This likely refers to states that promote electric vehicle purchases through incentives and emission standards.
Cupra is completely unfamiliar to the US audience," stated Adam Bernard, who leads AutoPerspectives consultancy firm. "The field is empty; the brand has no connection with VW or Audi. Is VW willing to invest heavily to build up this new identity?
Last November, Cupra executives visited the Los Angeles auto show to assess their rivals. Initially expecting sales to start in 2027, they have since shifted their aim to launch by the end of this decade.
The lineup of models will feature gasoline engines, hybrid cars, plug-in hybrids, battery-electric vehicles, as well as extended-range EVs equipped with onboard gasoline generators.
Cupra intends to manufacture these vehicles at Volkswagen Group’s facilities in North America. The potential locations currently being considered include assembly plants in Chattanooga, Tennessee; Puebla, Mexico, as well as the newly constructed Scout Motors facility in South Carolina.
The fluctuating U.S. tariff policies will be taken into account, yet they won't deter the brand.
"Cupra is keeping a close eye on the developments and will thoroughly tackle the possible effects on their supply chains and production network," the statement read.
Who will sell them?
Many of VW's American dealers were angered by the company’s plan to sell robust Scout SUVs and pickup trucks directly to customers.
There has been no announcement regarding Cupra's sales strategy as of now; however, reaching out to Penske can "clearly be seen as an effort to bypass" establishing their own dealership infrastructure, says Brian Gordon, who serves as the president of the Dave Cantin Group—a company advising dealerships. He adds that forming an alliance with a major dealer group could serve as a crucial foothold for them.
Reach out to Mark Phelan at 313-222-6731 or mmphelan@freepress.com . Follow him on X @ mark_phelan . Read more on autos and register for our autos newsletter . Become a subscriber .
The article was initially published in the Detroit Free Press. Can Barcelona's EV powerhouse, Volkswagen’s Cupra, penetrate the American market?
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