BERLIN - AUTOMAKER Porsche says it has increased its stake in Volkswagen AG to 42.6 per cent and hopes to take a majority in Europe's biggest car maker before the end of the year.

Porsche Automobil Holding SE was already Volkswagen's biggest shareholder, and said earlier this month that its stake had increased but did not give an exact figure at the time.

Porsche says in a statement released Sunday it wanted to announce its holding now, given the ongoing turbulence on financial markets.

The company also says it was sticking to plans to lift its VW stake above the 50 per cent mark before the year's end.