Volkswagen AG (VOW.XE) Chief Executive Martin Winterkorn said Monday he's upbeat on the auto maker's growth potential in the U.S. and China in 2010, but he expects "strong headwinds" in Europe and company's German home turf in particular.

"In overall terms, the world market will grow slightly in 2010 again. And Volkswagen is determined to derive above-average benefit from this development," Winterkorn said during a presentation ahead of the Geneva Motor Show.

Volkswagen's net profit slumped 80% year-on-year in 2009 to EUR960 million, as the auto industry's gloom took its toll. But the German auto maker expects vehicle sales, revenue and operating profit to rise again this year. Operating profit slid 71% to EUR1.86 billion in 2009 and revenue skidded 7.6% to EUR105.2 billion.

Although Volkswagen's earnings tanked last year, the Wolfsburg-based auto maker steered through the industry gloom better than most rivals, as state-backed scrapping incentive schemes on its home turf and its large footprint in China and Brazil had stabilizing effects.

The company is expected in the coming weeks to provide details on its plan to issue up to 135 million new preference shares. Investors have so far been cautious about the capital hike despite management's efforts to drum up support for its plan to dethrone Toyota Motor Corp. (7203.TO) as the world's largest auto maker and its pledge to boost profitability in coming years. Details of the rights issue haven't been disclosed.

Company Web site: http://www.volkswagen-ag.com

-By Christoph Rauwald, Dow Jones Newswires; +49 69 29725 500; christoph.rauwald@dowjones.com
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