Volkswagen is offering dealers fresh incentives to promote sales of its crucial Golf V model, the car maker reportedly said on Monday.

A company spokesman told Reuters dealers would get €928 ($US1,121) for each used car that customers trade in for its flagship car. "This only pertains to the new Golf," he reportedly added.

He told the news agency the programme is set to last three months and give dealers more leeway to cut deals with potential buyers.

Reuters noted that Volkswagen has since February offered free air conditioning to boost sales of the Golf, which was launched last October and whose turnover will help determine whether VW hits its 2004 profit targets.

Volkswagen aims to earn more than €2.5 billion before special items as its high-profile hatchback gains in popularity, the report said.

Reuters said VW has claimed it will beat its target of selling 600,000 new Golfs this year - it sold 207,000 Golf Vs in the first four months, the most recent available figures.