Skoda will go downmarket, Seat to challenge Alfa Romeo

"Seat could represent even more emotional cars, as exemplified by its Cupra models," Michael Jost, head of product strategy at the Volkswagen Group, has told Automobilwoche (via Automotive News Europe).

"Skoda could serve eastern Europe markets more intensively, as well as customers seeking functionality even more intensively."

When the company puts this strategy into place, it will be the second time it has attempted to position the Seat brand significantly further upmarket as a competitor for Alfa Romeo. The first time was during the leadership of Ferdinand Piech.

It's not clear over what time period Volkswagen will try to reposition Seat, but given the brand's economy car roots and early history as a maker of rebadged Fiats, it could take a while.

Skoda, meanwhile, will go back to being a brand for those less financially well endowed. It will reportedly redouble its efforts in eastern Europe where it has lost market share to brands like Hyundai, Kia and Dacia.

It could also drop some of its more high-end options, such as fake suede roof linings.

The automotive conglomerate will also try to ensure the main Volkswagen brand doesn't have vehicles that step on toes of its stablemates, with Jost ruling out a Tiguan "coupe" for the European market.