Volkswagen profits surge on strong demand from China

Feb 24, 2012, 14:57 GMT

Frankfurt - Europe's biggest carmaker Volkswagen said Friday its earnings surged in 2011 following strong demand in China, the world's largest car market.

The German-based group said its net profit jumped to 15.41 billion euros (20.6 billion dollars) from 6.84 billion euros in the year earlier, as a result helping the company to take another step in its plan to topple General Motors as the world's largest auto manufacturer.

Sales hit a record 8.3 million vehicles with group revenue rising 26 per cent to 159.34 billion euros, said VW, the world's second biggest carmaker.

The jump in earnings last year also came after VW booked gains on its holding in the luxury sports car maker Porsche.

VW said operating profit rose 58 per cent to 11.27 billion euros last year.

The company is to release more details of its performance last year including its fourth-quarter results at a press conference set for March 12.