The Audi Q5 has been a strong seller for VW's luxury brand, which contributes a big portion of VW's global profits. Photo credit Audi

Volkswagen (NASDAQOTH:VLKAY) surprised analysts with stronger than expected second-quarter earnings, as booming sales of luxury cars and some new cost-saving technology helped offset sluggish sales in some parts of the world.

VW's pre-tax profit of about $4.6 billion dollars was up almost 5% from what the German giant earned in the second quarter of 2012 -- and VW's profits last year led the industry's. In this video, contributor John Rosevear takes a closer look at the two key factors contributing to VW's strong quarter -- and at the company's prospects for another big full-year profit.

Fool contributor John Rosevear owns shares of Ford. Follow him on Twitter at @jrosevear. The Motley Fool recommends Ford. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.