Scrapping of scrappage worries VW

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Volkswagen says it expects to post record sales again this year, but it has forecast that 2010 will be 'extremely difficult' as scrappage schemes worldwide are wound down.

The biggest European car maker said sales of it nine brands - which include Audi, Seat and Skoda - came to 531,000 vehicles last month, an increase of 19.1% from November 2008. But deliveries were 4.7% lower than in October.

In the 11 months from January to November, sales gained 2% from the same period last year to 5.85 million vehicles, which allowed VW to say it expected a 'slight rise in full-year deliveries' from the record 6.2 million in 2008.

VW sales director Detlef Wittig was quoted as saying that 'the coming year will be extremely difficult'. VW expected sales to continue rising in its biggest market, China, but also foresees 'a marked decline on the European market in particular', as sales have been boosted this year by government premiums to drivers who scrapped old cars

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