Volkswagen AG's (VOW.XE, VLKAY) Bentley brand plans to go ahead with a high-end sports utility vehicle that would cost more than $140,000 as well as new versions of its Continental model to meet strong demand for ultra-luxury cars.

"If we bring this (SUV) to the market it will be positioned significantly above the vehicles that are currently available in this segment," Bentley brand chief Wolfgang Duerheimer said Tuesday.

The U.K.-based Bentley said it swung back to a profit in 2011 after two years of losses, helped by a 37% rise in sales to 7,003 vehicles, though it declined to disclose detailed full-year profit figures. In the January-to-September period last year, the firm narrowed its operating loss to EUR6 million from EUR145 million in the same period in 2010.

Volkswagen, due to announce full-year earnings for all its brands in early March, is set to make a final decision on Bentley's SUV project "in the first quarter 2012," Duerheimer told reporters. He said he expects "a positive decision".

In the meantime, strong global demand for Bentley's Continental and Mulsanne models should sustain sales this year. Bentley has "ambitious but realistic plans which reflect global economic conditions as much as our new product line up," Duerheimer said.

Sales growth should be "in the double-digit range" this year and could "come close" to a new record if the economic environment doesn't deteriorate. He said earnings are set to improve as well in 2012 as Bentley is keeping costs under control.

His comments underscore how international demand for Europe's luxury car output continues to offset regional economic woes for manufacturers, with record sales for Volkswagen's premium brand Audi as well as rivals such as BMW AG (BMW.XE) and Daimler AG's (DAI.XE) Mercedes-Benz.

Volkswagen's growth plans for Bentley could mirror the successful expansion of models at Volkswagen affiliate Porsche Automobil Holding SE (PAH3.XE), said Duerheimer, himself a former head of research and development at Porsche's sports-car unit. Bentley might launch derivatives of its Continental model, similar to what Porsche did with its 911 model. Porsche's SUV, known as the Cayenne, also been a big hit since its launch in 2002.

"I can well imagine a new two-seater coupe, a racing version and a car with a new roof system," Duerheimer said, referring to possible new versions of the Continental.

In 2011, the U.S. continued to be Bentley's largest market with 2,021 cars sold, up 32% from the previous year. China came in second. Sales volume there doubled to 1,839 cars in 2011.

Sales in Continental Europe were up 53% to 1,187 cars, driven by strong demand in Germany. Bentley said the U.K. market was difficult in recent months, but sales still rose by 5% to 1,031 cars in 2011.

Duerheimer said he sees further growth potential in the U.S., China and Europe, particularly in Switzerland, Austria, the Balkans and Russia.

Volkswagen, Europe's biggest European auto manufacturer, bought Bentley in 1998 from Vickers PLC after a complex bidding war with BMW. Bentley was spun off from Rolls-Royce Motors with the Rolls-Royce automotive brand ending up part of BMW. Rolls-Royce sales rose 41% to 2,441 vehicles in the first nine months of 2011, according to latest BMW data.

-By Christoph Rauwald, Dow Jones Newswires;

+49 69 29 725 512; christoph.rauwald@dowjones.com

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