SEAT is to produce not one but two new B-segment models.

Competing against cars such as the Ford Mondeo and Peugeot 407, SEATs will enter the mid-size family hatch/junior executive sector with a saloon and estate in 2009. B-segment cars account for around 1.15 million sales in Europe alone.

As with most SEAT models, the new cars will be built at the ultra-modern Martorell plant near Barcelona.

President of SEAT Erich Schmitt said: “The assignment of these two new models to the plant in Martorell is an historic step for SEAT. By these means, we enlarge our current product range, which not only gives our clients the possibility to grow with the brand, but also enables us to increase the profitability of our dealer network thanks to the availability of these new models”.

SEAT is owned by Volkswagen and last year posted a record 1.4% share of the UK new car market in the UK.