Full year operating profit, excluding costs related to its diesel emissions scandal, came in a $12.2 billion.

Its shares, which had been down as much as 2% turned positive and were up over 4% by early afternoon.

Sales at the German giant rose 1.7% in December at a time when new car registrations in Europe dropped nearly 4%.

But like its rivals, Volkswagen faces numerous challenges from lockdowns.

It's also being impacted by a global shortage of chips needed for production.

VW foresees tough competition in developing electrified and self driving cars.

The merger of Fiat, Chrysler and Persia owner P S.

A.

To create the world's fourth biggest automaker, Stella Antis, adds to the pressure.

Volkswagen said this week that it missed you targets on carbon emissions from its passenger car fleet last year.