In 1973, SEAT and ‘Citroën-Hispania’ jointly contributed equal shares in founding the Vigo-located factory of ‘Industrias Mecánicas de Galicia, SA’ (Indugasa)[bg_collapse view=”button-green” color=”#4a4949″ icon=”eye” expand_text=”Show More” collapse_text=”Show Less” ]
producing constant-velocity joints, essential components used in front-wheel drive cars i.e. in a transmission layout the use of which was becoming more and more common at the time. This plant — which in the next years would supply parts not only to SEAT and ‘Citroën-Hispania’ but also to ‘Ford España’ — was meant to be transferred later in 1986 to the multinational company GKN.
On May 1975, after a request from the Spanish state authorities to ensure the rescue of the jobs for the workers in the Authi owned factories, SEAT moved on talks with the parent company British Leyland Motor Corporation (BLMC) of the bankrupt Authi in order to take over the brand’s operations in Spain leaving aside GM‘s interest in it, something which would otherwise open the path for the American automaker to enter the Spanish market thus jeopardizing the relationship with Fiat. The talks ended soon on July 1975, when an agreement was announced between the two parts under which SEAT would acquire from BLMC the Authi brand along with its assets for 1,250 million pesetas. The imposed acquisition of the Landaben plant would also result in giving up SEAT’s plans to build a new facility in Saragossa. Although the Authi supplier factory in Manresa was transferred to a company called Cometsa for 150 million pesetas, the Landaben plant in Pamplona remained under SEAT’s ownership to continue production on February 1976 only of SEAT cars this time.