The biggest car company in Europe, Volkswagen, reported an 80 per cent fall in their annual net profits. Their operating profits also fell. Meanwhile, German carmaker BMW also reported a sharp fall in profits for 2009.

The firms are both thought to be suffering from the global downturn, although sales in emerging market helped to remedy damage. BMW reported strong sales growth in Brazil, China and India . Initial reports from 2010 also show a strong start to the year.

VW chief executive Martin Winterkorn was reported as saying: We have no intention of slowing down in 2010. Both firms expressed optimism for 2010, with a gradual global economic recovery expected. How the car finance and car dealer industries will be affected remains to be seen.