Seat Monitors Developments in Catalonia After Strike Disrupts Production

By Max Bernhard Features Dow Jones Newswires

Seat, the Spanish car maker owned by Volkswagen AG (VOW.XE), said it is closely monitoring developments related to the Catalan independence referendum after a regional strike caused disruption at one of the car maker's plants Tuesday.

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"We welcome a stable political environment that allows us to invest to generate growth and jobs," Seat said in a statement on Wednesday.

The Catalan independence referendum on the weekend, which the central government and the European Commission have called illegal, exacerbated tensions between the region and the Spanish government. Following the referendum, pro-independence parties and unions called for a general strike on Tuesday.

As a result, Seat had to halt production on one of three lines at its Martorell plant in Catalonia when deliveries were interrupted by the closing of several highways. At the beginning of the night shift, production was working normally again, the company said.

Seat is the largest employer in Spain's automobile sector, employing more than 14,000 people at its sites in Catalonia, according to the company.

Its largest production facility at its headquarters in Martorell, some 30 kilometers from Barcelona, was opened in 1993. At the site, Seat produces Seat cars as well as models for Volkswagen's luxury brand Audi.

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"It is too early to make an assessment on what could happen," a company spokesman said.

Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

October 04, 2017 09:01 ET (13:01 GMT)