Volkswagen, the car maker behind the Audi, Lamborghini and Bentley brands, sold a record 6.2 million cars in 2007.
Improved productivity and rising demand in Asia and Eastern Europe boosted profits by 40% to reach 6.15bn euros (£4.7bn;$9.3bn).
Europe's biggest car-marker has been expanding into emerging markets and has improved its market share in Europe.
Volkswagen said it expects growth to continue in 2008, with nearly all brands bringing out new models.
"We expect deliveries to customers to exceed the record set in 2007 with sales figures rising in the Asia-Pacific and central and Eastern Europe regions in particular," the company said in a statement.
The company aims to overtake Toyota as the world's leading car manufacturer in the next ten years.
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