#184 Wie etabliert man eine Marke von 0 auf 100, Sven Schuwirth?

Hi, hello.

These innovations always find open ears with us. Everything that goes toward design, the driving experience, new materials, new design language, all these emotionally inspiring topics, that is where the focus lies.

When I have to see too much PowerPoint, attend too many meetings.

Our absolute heart topic is electric mobility, bringing it into people's hearts. What sometimes gives us headaches is the uncertainty or the non-existent uniform approach across Europe, because I believe we as Europe have a huge opportunity. There is a lack of clear framework conditions across countries and that is a huge opportunity and we are fighting for it.

Well, the personality I am thinking of unfortunately is no longer alive. That was David Bowie, because he would be one of the inspiring figures. If he were still around, it would be nice to have people who inspire us at the wheel. But there are many, I don't think it is a single person, but exactly such people who thought a bit differently.

First of all, I've been with the company for four years. The first three years I experienced from the outside; I was previously at Audi. But I knew the founding father Luca de Meo quite well because he was my boss. When he left Audi to go to Seat, I wished him good luck. I was a bit critical because Seat was an established brand but at a low price point, and in Europe we have the challenge of high costs, so the margin is low. For over 30 years Seat operated at breakeven. Then the idea was born: how can we give Seat S.A. a sustainable future? Could we not turn Seat into something else, a new brand? Cupra is now a second brand within the Seat group and Volkswagen Group. We looked at the market: there are many premium brands with prestige and history, and many brands that are interchangeable, all becoming more similar. The younger generation wants to differentiate themselves; there are hardly any brands serving them except from outside Europe. We built a brand for whom authentic emotion is most important, people who choose a car because it brings joy and they enjoy expressive design. That was the simple recipe. Emotions come from Barcelona because Barcelona is a world brand for lifestyle. We tried to bring that to the markets with three pillars: expressive design, performance, and a challenger mindset. We took the freedom to do things differently, using the Volkswagen Group as a supermarket: we take parts we need and cook a tomato soup, but add chili and fresh tomatoes from the Spanish market. It's still tomato soup but tastes differently. We were surprised by the success because the plan wasn't that fast. We struck a nerve, especially with the younger generation. We proved that we can build a new brand in Europe without envy of other continents. We financed ourselves through success. That is a story that hopefully inspires others not to fall into depression on this continent. Yes, Spanish way of life, a good antidote to the recession and depression we are currently going through.

First of all, when we are 10 years old in 3 years, it doesn't mean we have ten models. That's not a coincidence. At the beginning we had little money. We took Seat models and gave them a double batch upgrade: we took a Seat Leon and Seat Ateca and turned them into Cupra models, sharper in driving, horsepower, materiality and design. Then with the Formentor we launched the first independent Cupra in 2020, just 5 years ago. Then with success we developed the first fully electric Cupra Born based on the ID3, but with different design. Then Cupra Tavascan and now Terramar, gradually building the portfolio to reach different customers and gain critical mass. You need critical mass for dealers and market visibility. If it's just a niche, it's dangerous. Strategically, we aim for 3% market share in Europe on average by the end of the decade, no market below 3%. Germany already has that, Austria at 5%. That is about half a million vehicles. We need that to be sharp but not the car for everyone, to have critical mass and be profitable sustainably.

Maybe even one level higher: as a car manufacturer, Cupra's claim is to be more than a car brand. We want to be a brand for the new generation. Many say that is just marketing. But we have to prove it. So we thought, besides the cars being more expressive, how do we redesign the dealership? We also have normal showrooms, but they look like stylish living rooms. Those are Cupra Garages. For an extra touch, at selected locations we put ourselves where people move in their free time, urban life, cafés, bars, shopping, work. It's like a three-dimensional billboard, but more importantly a place of encounter. We open doors without pushing sales. The focus is on people coming together to have a good time. We gave this concept a twist: it's a place where you say, 'Hey David, let's go for a coffee or a drink.' We want to leave something in people's hearts. The goal is that people say, 'Let's go to the Cupra City Garage.' We don't always succeed fully, but we learn. When you build a new brand, you need to listen to what people want and dream, and respond with your means.

We always had Austria on our radar, but everything has to fit. You can't just decide to open a Cupra City Garage anywhere. You need the right location. It's not that there is too much vacancy exactly where we want to be. It has to be economically viable, and that is also a bit of luck. Like in Munich at Odeonsplatz, a great address that became available during COVID when many shops had to close. We got a very attractive rent. That is a prime location. Here in Vienna it's also a prime location with enough foot traffic. It's not about necessarily going to Vienna, the next is Manchester, but the quality of the location matters. The location has to allow what we want to do. You need room for a car, gastronomy, events. It can also transform into a club in the evening. Multifunctionality. You can plan it in PowerPoint, but many other things need to come together. We got this location a year ago and said, 'Let's do it.'

You could just make a product, but we firmly believe, and the success so far proves us right, that we want to create a technical ecosystem, a lifeworld. That is the car. But it's also authentic that when we say we want to be a bit edgier in the car, that we also succeed in these garage locations or showrooms. We don't want to fall into uniformity like many other brands. Worldwide, whether in New York, Vienna, or Berlin, they all look the same. We have a different philosophy. You should have a Cupra feeling, with Cupra logo and materials, but we respect the locality. In Vienna, we try to match what we bring from Barcelona with what makes Vienna special. We don't impose Cupra Vienna; it's a mix that creates something new. Every garage is different yet all are Cupra. The one in Munich is different from the one in Mexico, and Manchester will look different. There are recurring elements, but the beauty is the freedom to be uniform? Actually, if you are too established and let go, you become uniform. That is also a recognition feature, but we as Cupra challenge ourselves to make each one better. The tenth was good, let's make the eleventh even better and the twelfth different. It's an intense process. It's not just given to an architect; it's a small community, independent of committees. We go through every damn detail of what we decide, down to the necktie you are wearing. My humble self and a couple of others, our chief designer, together with the architect, we go through every detail with love and time to make it perfect for ourselves. And if it's perfect for people out there, even better. The journey continues, always questioning, keeping the hunger to do things differently and better. That is one of the great success secrets.

Yes, it is. When I was asked to leave Audi, I compared it to Audi in the late 90s/2000s, which was also an underdog. But Audi is much bigger. This company is much smaller and the people are even more passionate. Plus the Spanish culture is truly diligent. It's a mindset, a lifestyle. How often do you get the chance to build something new in life, and within the Volkswagen Group and in Europe? It was a perfect match for me. It motivates me enormously not to give up but to sustainably build something for the people on this continent. It's a company, but hopefully also a bit of motivation for everyone out there. If we bring the right people together and leave committees and PowerPoint behind, just talk as normal people regardless of hierarchy, we can make it happen. Whether it's a small Cupra City or a different stand at an exhibition, make it an experience for people, full of contact with inspiring personalities like the artist, the architect. Each one is different. That is what drives us all together. We are a bit intoxicated by this 'Cupra Tribe' as we call it. It's not for nothing we call it a tribe, like a tribe of like-minded people with a startup feeling. It's like creating something among friends. That motivates me and drives me. It is the best time of my life.

You said the last word 'handbook'? No, don't make a book. I believe you need an idea. Many make the mistake of making a classic plan: we do this, tomorrow that. We don't have a strategy. We have an idea of what we want to be and a goal, but the way there requires flexibility and being authentic. Authentic doesn't mean uniform, but staying hungry while staying true to your values. That may sound simple, but it's a challenge in a large corporation with many rules and norms. We take a rebellious stance; the geographic distance helps us question things and fight for freedom. We deliberately do things differently. Of course, we are just a car manufacturer in a large group, one of the biggest on the planet, with responsibility. Many people depend on it. But it's a balancing act. The most important thing is to stay true to yourself and to the idea of the brand. Put the brand forward, not yourself. Stay open, listen to people without immediately falling into justification. Take inspiration from other sources, not always the same. That mix takes time and energy but it's fun. In the end, we are all human. You cannot fit everything into formulas. The idea is most important; the plan can be flexible.

I have no idea. No, seriously, we have goals. The way to achieve those goals I can tell you today, but maybe in two years I have to throw the plan in the trash and do something else. Yes, we are still a young brand, we need to grow. At the end of the day we are a company and have to finance ourselves. More nice cars are coming. Next year will be very important; we will bring our urban electric vehicle, the Cupra Raval, to the road. We are very excited about that because it helps make electric mobility more accessible or democratize it. It will be a very expressive car, one that consciously stands out in city centers and proves that electric mobility is anything but boring. Especially regarding the interior and the experience for all senses. I don't want to reveal too much, but materiality, sound, music experience, smell, all these senses, and of course the eyes. Taste we already have; there is a Cupra drink you can take in the car. We try to appeal to all senses Cupra-style. That's the short term. In the long term, we want to globalize the brand. Europe is great and our backbone. We are strong outside Europe in markets like Mexico, Israel, North Africa, Australia. You may have heard that we eventually want to go to the US, regardless of the current geopolitical situation. We won't let that deter us. The goal remains, and that might be the best example that we have to adjust the path across the pond from time to time, with uncertain outcomes given what is happening in the US that changes every week, but the goal is fixed.