Cupra set to expand into US market

Cupra in talks with the vast Penske Group about US distribution.

Cupra, the Spanish sporty and electric brand spun off from SEAT, is currently in talks about entering the potentially lucrative US car market, and to sell its range of cars in the States, it’s been chatting to Penske…

I thought Penske was a racing team?

It is! The famed Penske team was founded by Roger Penske - one of motoring and motor sport’s all-time greats - and currently runs its own Indycar team, as well as the works Porsche World Endurance Championship team. However, the Penske empire is about more than just racing - it’s also a huge player in the US car retail market, with chains of dealerships across the country.

Is Cupra not just for Europe, then?

No, and in fact, it’s already a global brand, having started selling cars in Mexico and Turkey and Australia, where it’s been selling cars since 2022. The US market would be a big deal for Cupra, though, and the local expertise and strength of Penske could help the brand break through.

“Cupra’s ambition is to be a truly global brand and expanding into the United States represents one of the greatest milestones on our journey,” said Wayne Griffiths, CEO of Cupra. “We have great respect for the U.S. market, recognising that a strong distribution and retail strategy is essential for success. By entering into preliminary discussions with Penske Automotive Group, we are exploring opportunities with the best possible partner, one with the right distribution network to introduce Cupra to a new generation of American car lovers. Penske Automotive Group’s leadership in the industry and experience with the Volkswagen Group make this a very promising potential partnership.”

What happens next?

Well, the talks with Penske are currently only in their preliminary stages, but we doubt that Cupra would be talking officially about it all if it wasn’t going to happen. To lead Cupra into the US, Bernhard Bauer, the former Managing Director of Cupra Germany, has been appointed as the new Managing Director of Cupra USA. The final location for its headquarters and details of the specific model lineup will be announced at a later date, and at the start, Cupra has said that it will only establish a presence “in key states that are aligned with the brand.”

Cupra’s already made a success of itself. Since the brand was launched on its own in 2018, it has sold 750,000 cars and has become one of the fastest-growing brands in Europe. It’s been lauded with several awards, including top Red Dot Award: Best of the Best for the DarkRebel Showcar, and has been named the second-trendiest brand by 'Auto Motor und Sport' in Germany. It has achieved a brand value of USD$2.1 billion.

Published on: November 23, 2024