Volkswagen’s third-quarter earnings jumped as profit margins at its main passenger-car division rose for the first time in almost two years, adding to record sales of luxury Audis and Porsches.

While sales at Audi and Porsche – which account for two-thirds of group profit – have been rising all year, they have been slowing at the carmaker's VW brand.

Profit margins have also languished at the division, which has high fixed costs and production issues related to a new modular manufacturing platform. To boost efficiency, VW in July announced a goal to cut costs by €5 billion per year from 2017.

However, in the third quarter profitability at the VW brand increased for the first time since the final three months of 2012. – Reuters