Wayne Griffiths, who served as CEO of Seat and Cupra for nearly five years, announced his departure on a voluntary basis last Monday, leaving the automotive industry in a state of speculation regarding the timing and implications of his exit.

Known for his bold management style and previous slogan "Without pressure, there's no fun," Griffiths significance during his tenure included steering the company back into profitability, advancing the electric vehicle transition, and initiating the transformation of the Martorell factory.

Griffiths's leadership was characterized by a series of achievements as well as challenges.

Under his direction, Seat reported an operational profit of €633 million for 2024, a modest increase from the previous year, and recorded sales of 558,100 vehicles across its brands, marking a 7.5% growth.

This trajectory of recovery was particularly noteworthy within the larger context of the Volkswagen Group, which announced a more than 30% decline in profits and impending job cuts.

The sudden nature of Griffiths's resignation has prompted inquiries into the reasons behind the decision.

While Seat's brief statement cited a request for immediate departure to pursue new challenges, Griffiths himself indicated that these challenges remain undefined, expressing a sense of readiness for future opportunities on social media.

Industry analysts have suggested potential factors behind his departure could range from new job prospects to internal conflicts.

Markus Haupt, the interim president and an internal candidate favored by unions, now leads Seat through a critical transitional period.

Insiders have indicated that Haupt is well-positioned, given his familiarity with both the company and the broader Volkswagen Group dynamics.

Analysts note that the chosen successor will be integral as Seat faces significant hurdles, including profitability stagnation and a reliance on the recently launched Cupra Tavascan, which is manufactured in China and subjected to the European Union's 30.7% tariffs on Chinese vehicles.

These tariffs have raised concerns about the sustainability of Seat's profit margins, which had not yet reached the company's objectives.

In 2024, the return on sales remained static at 4.4%, below the desired 5%.

Should production of the Tavascan be compromised, it could lead to a reduction in combustion engine vehicle production at Martorell and potentially impact employment figures, as previously cautioned by Griffiths.

Estimates suggested that job reductions could affect around 1,500 employees.

In addition to trade tensions in Europe, Seat is also navigating potential tariffs imposed by the United States, which could hinder plans for geographical expansion, particularly in the North American market.

As discussions continue with Penske Automotive Group to establish a presence in the U.S., uncertainties surrounding production locations and associated tariffs loom large.

Griffiths's leadership style was described as direct and confrontational at times, often clashing with Volkswagen executives resistant to his unorthodox approach.

He was particularly committed to Cupra, the brand he positioned as pivotal to Seat's strategy for profitability and electrification.

His departure leaves the company with many unanswered questions and a need for continued adaptation amid rapid industry changes and geopolitical challenges.

The transition leadership at Seat may be swift, reflecting the urgency of the current landscape, similar to the rapid succession following the previous departure of Luca de Meo in January 2020. With both internal and external pressures, the selection of Griffiths's successor will be closely watched as the company seeks to enforce its strategic direction amid a turbulent market.