Marchionne? Mirafiori? Volkswagen!

FRANKFURT (Dow Jones)--Volkswagen AG will pay each of its German contract workers a EUR7,500 bonus after Europe's largest car maker posted a record profit last year.

Volkswagen agreed the amount with labor representatives at the company's German plants, it said in a statement, adding that the move demonstrates that its staff benefit from rising profit and sales.

With the company nearing its medium-term goals more quickly than planned, Bernd Osterloh, the head of VW's works council, said "the employees who made this success possible" will profit as well as shareholders.

The company paid the workers a bonus of EUR4,000 a year earlier. The bonus applies to labor contract workers at VW's German locations, including production as well as office staff.

VW released its full-year earnings on Feb. 24, with after-tax profit more than doubling to EUR15.8 billion. It proposed a dividend increase based on the positive results.