F&I Management & Training

Volkswagen (VW), Europe's biggest car maker, has reported an 80% fall in profits for 2009 partly due to a fall in profit margins.

The company made a net profit of 960m euros ($1.31bn; £864m) last year, but said it expected operating profit and sales to recover this year.

Sales slipped by 7.6% in 2009, but the company retains its ambition to become the world's biggest car maker.

Despite the sales drop, VW benefitted from car scrappage schemes.

It is also doing well in economically-strong China, which is now its biggest market.

Growth

The business is expanding in both Europe and the Far East.

Earlier this month, VW said it would buy a 20% stake in Japan's Suzuki Motor for 222.5bn yen ($2.5bn; £1.5bn).

Suzuki said it would take a stake in VW in return, spending "up to one half" of the funds it receives on VW shares.