SEAT Leon

The Volkswagen-owned manufacturer has a £3billion war chest with which to attack Europe's most popular markets.

The first addition to the range is likely to be an off-road version of the Leon to rival Skoda's new Oct­avia estate-based Scout and Ford's forth­coming Focus-based X-MAX SUV.

SEAT's chief of research and dev­elopment, Frank Bekemeier, told Auto Express: "The Haldex four-wheel-drive system on the Altea Freetrack gives a sporty driving experience. We're looking into using it on the Leon soon."

The Spanish firm is also investigating sectors of the market in which it currently has no presence. Bekemeier added: "We can't afford to make niche products. We need to target big-selling markets, then offer drivers something which is exclusive to the brand - for example, cars with a sporty edge."

A new saloon and estate to rival the latest Ford Mondeo range are set to go on sale in 2009. These will be followed by a compact SUV based around Volkswagen's all-new Tiguan.

There are plans for a city car using the same underpinnings as the VW Fox, too. As SEAT's models are histor­ically priced lower than the equivalent VWs, this newcomer should sell for even less than the £6,590 Fox.

Bekemeier also revealed that while it was impossible to add a third row of chairs to the current five-seater Altea XL, the people carrier would be replaced by a car with room for seven at the start of the next decade.