Falling share prices on the Tokyo stock exchange have enabled Volkswagen to overtake Toyota and become the world’s largest car manufacturer judged by the amount the company’s shares are worth.

The Japanese manufacturer’s shares fell to their lowest level in four years on the Tokyo Stock Exchange yesterday, down 4.9 percent.

Meanwhile Volkswagen’s share value has gone up 87 percent this year, because of Porsche’s bid for a majority stake in the company. Hedge funds that had bet on the VW Group’s value falling have been forced to close their positions,showing how strong the company is.

Despite the global economic downturn, the VW Group remains “confident” it will meet all of its financial targets for the year, according to its CEO Martin Winterkorn.

Independent analysts at Bloomberg predict that VW’s net income for 2009 will change little from the estimated $7 billion it will earn in 2008 – despite the turmoil facing the new car market.

Just last month, in the face of falling sales worldwide, Audi’s global sales jumped 12 percent led by growth in Germany, Italy and China.