Volkswagen AG is depending on Seat’s new models to increase sales as it aims to break even within the next five years, according to Seat CEO James Muir.

Last Wednesday, Muir said that parent Volkswagen has approved plans to widen capacity utilization at Seat’s facility in Martorell, near Barcelona, by launching new models. Seat uses only 60% of the plant’s annual capacity of 500,000 vehicles. J.D. Power Automotive Forecasting said that the plant-usage breakeven point is about 65% to 68%. A value lower than this range results to huge losses. Last year, Seat’s operating loss widened to almost 340 million euros ($431.9 million) from a loss of 78 million euros in the previous year. Muir added that profits can be achieved “just by cutting costs.”

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