UPDATE 3-VW finance units, growth targets hit by crisis

* Crisis to make VW miss growth targets - labour head

* VW to extend Christmas shutdown at German plants

* VW says seeks state guarantees for finance units

* BMW says still considering such a move

* VW shares up 1.4 pct, Daimler up 4.3 pct, BMW up 2 pct

(Adds VW drops growth targets, updates share prices)

HAMBURG, Germany, Dec 9 (Reuters) - Volkswagen (VOWG.DE), Europe's largest carmaker, conceded that fallout from the economic crisis is now hurting not only demand for its cars but also its financing business.

The company said on Tuesday it has asked the German government for loan guarantees for its financial services and banking units, and labour leader Bernd Osterloh said the group would miss its growth targets due to the crisis.

"The financial crisis will keep us from reaching our growth targets as they were planned for the coming two years," VW works' council head Osterloh said in a statement.

To offset sliding demand, Volkswagen would extend the Christmas shutdown at its German plants by five days and reduce spending on everything that was not directly related to its products, management board member Horst Neumann said.

Carmakers across Europe and Asia have reported already subdued sales tumbling faster in November as the deepening recession drives buyers from showrooms and prompts warnings of more gloom next year.

Now Volkswagen has sought state guarantees for its financial divisions to cover refinancing of car loans, becoming the first manufacturer to take such a step in Germany.

Volkswagen did not specify what amount of guarantees it was seeking from the government's nearly 500 billion euro ($642.7 billion) package to stabilise the financial sector.

Premium carmaker BMW (BMWG.DE) said it was still deciding whether to seek guarantees for its banking unit, while rival Daimler (DAIGn.DE) said it had no plans for such a step at this stage but could now reconsider its position.

General Motors' (GM.N) German business Opel last month sought 1 billion euros in guarantees from the German federal and state governments to help it weather tough times.

That made it the first European carmaker to seek a government bailout amid a collapse in demand for new cars.

Volkswagen shares rose 1.4 percent to 304.74 euros at 1359, underperforming the DJ Stoxx European car sector index .SXAP, which advanced 2.4 percent.

Daimler shares climbed 4.9 percent to 25.80 euros, while BMW stock was up 2.5 percent at 21.455 euros. (Reporting by Jan Schwartz in Hamburg, Irene Presisinger in Munich and Hendrik Sackmann in Stuttgart and Peter Dinkloh in Frankfurt; Editing by Jon Loades-Carter, John Stonestreet) (michael.shields@thomsonreuters.com, Reuters Messaging: michael.shields.reuters.com@reuters.net; +49 69 7565 1266)) ($1=.7780 Euro)