Volkswagen is set to report fourth-quarter operating profit rose by more than a third after one-off expenses for personnel cuts, helped by gains in market share, analysts say.

Thanks to cost-savings related to its "ForMotion" programme, operating earnings at the world's fourth largest carmaker should grow 36 per cent to €515 million, according to the average forecast of 12 banks and brokerages in a Reuters poll.

Volkswagen is officially due to report full-year results on March 7, but its shares rose more than two per cent amid market talk that it may release preliminary data on Friday, with the figures expected to be upbeat. VW declined to comment.

"We do not believe that VW's Q4 numbers will disappoint," WestLB analyst Lars Ziehn told clients in a research note.

Volkswagen had forecast higher operating profit after special items as well as an increase in earnings before tax for the past year, as results were expected to benefit from a €3.1 billion gross improvement from "ForMotion". Armed with fresher models like the VW Fox, Golf Plus and GTI as well as the updated Polo, Volkswagen has been able to eat away market share from its main European rivals PSA Peugeot Citroen and Renault.

New car registrations for the VW brand rose 3.9 per cent in western Europe last year according to Brussels-based industry group ACEA, and market share expanded to 10.3 per cent amid stagnant demand.

Peugeot, whose parent company has warned on profits twice this year, suffered a 5.4 per cent decline last year while Renault, which warned once, posted a 5.6 per cent drop in registrations. Ford and GM's Opel brands also saw weaker demand.

Overall, Volkswagen group deliveries to customers worldwide rose 3.2 per cent to a record 5.24 million last year.

Despite strong success in its home market of Europe, losses in China and the United States have punched a gaping hole in Volkswagen's income statement.