WOLFSBURG, Germany: Europe's largest car manufacturer, Volkswagen – which also owns Skoda and Audi – has announced that worldwide sales of the VW marque rose by 8.4% in the last quarter, fuelled by demand from China, Latin America, and its German homeland.

Global deliveries increased from 850,000 to 920,000 in the first three months of 2008, and the company is hoping that demand for its new Golf – its best-selling model – and reduced labour costs will help it deliver record profits this year.

It cut the Volkswagen brand's workforce by one fifth last year, and also scored successes with launches of the new Skoda Fabia and Audi's A5 models.

Ulrich Hackenberg, Volkswagen's head of brand development, said: “It's not only important to upgrade our existing models but to roll out concepts for new cars”.

“We are committed to expand deliveries to 6.6 million units by 2018”.

Data sourced from Bloomberg.com (Germany); additional content by WARC staff