Seat is to embark on a five-year restructuring plan - and company CEO James Muir has described it as "the last attempt for Seat as a brand".
"This is the last attempt for the brand. It wouldn't make sense to think anything else," Muir said, acknowledging his VW Group bosses are growing increasingly frustrated with the brand.
However, he acknowledged: "If one would want to get rid of Seat, one would have to give the other part money to take it."
Plans include better use of Seat's Martorell factory near Barcelona, which can produce 500,000 vehicles a year but currently runs at only 60 per cent capacity.
Muir stated that the plant must run at 90 per cent capacity to be profitable. Initiatives include production of Audi's small SUV, the Q3, in Spain from 2011. Around 80,000 units of that car are expected to be built per year.
Seat's previous three-year turnaround plan failed: sales fell 8.5 per cent to 336,683 cars in 2009.
Muir replaced Erich Schmitt last September.
The company's first quarter losses this year were lower year-on-year, at 110 million euros (£100m).
"I cannot solely rely on cost reduction to make Seat profitable. It'll be an uphill battle, but I believe it is possible," added Muir.
