AutomobilWoche reports that VW has decided to build the future SEAT SUV at Skoda's plant in Czech Republic. The Seat SUV will be built in the Czech Republic alongside the next-generation Skoda Yeti compact SUV because production costs there are significantly lower than at Seat’s local plant in Martorell, Spain.

Seat is the only VW Group volume brand that doesn’t have an SUV in its lineup and the brand suffers because of that.

Seat is developing an SUV that would “fit the brand and develop another European sub-segment” for the carmaker.

The Seat crossover is likely to feature design cues from the 2011 IBX concept above and to be based on VW’s MQB architecture.