Skoda,Audi Spike Volkswagen sales

Volkswagen AG, Europe's biggest automaker by sales, said Thursday that its new car sales rose 7.6 percent in the first five months of the year to 2.5 million amid rising demand in Europe and Asia.

The Wolfsburg-based company said sales of its VW-branded cars rose 7.1 percent to 1.5 million in the January-May period versus a year ago, while commercial vehicle sales rose 9 percent to 191,000.

The company's Skoda brand reported a 14 percent increase in sales to 255,000, while sales of its luxury Audi AG unit rose 9.6 percent with 420,000 models sold.

But sales by its Spanish unit, Seat, fell 1.6 percent to 180,000 from the first five months of 2006.

Sales growth was strong in Europe, where sales rose 2.9 percent to 1.58 million vehicles, and in Asia, where sales rose 20 percent to 414,000 cars.

Sales in South America and South Africa also showed gains, with deliveries up 24 percent, while in North America, the VW and Audi brands saw a 1.8 percent increase with 215,000 cars sold.

Shares of Volkswagen slipped nearly 1 percent to 114.19 euros ($153.32) in Frankfurt