REFILE-UPDATE 1-Volkswagen sets mid-term goal to be top carmaker

(Corrects spelling of "Strategy" in fourth paragraph and "earmarked" in sixth paragraph)

* VW unveils targets to unseat Toyota atop industry * Seeks at least 5 pct margin in car business

* Aims to top 10 million vehicle sales by 2018

(Adds background, quote)

FRANKFURT, Feb 2 (Reuters) - Volkswagen (VOWG_p.DE), aspiring to unseat Toyota (7203.T) as the world's top carmaker by 2018, unveiled on Tuesday its mid-term goals that include an operating margin of at least 5 percent for its car business.

The margin target based on earnings before interest and tax does not include the integration of Porsche (PSHG_p.DE) planned for 2011, Europe's top carmaker said in a statement.

"The Volkswagen Group is seeking global economic and environmental leadership in the automotive industry by 2018," it said.

The German carmaker disclosed details of its so-called "Strategy 2018" as rivals declared open season on Toyota at a time when the industry leader is seen as most vulnerable. [ID:nN29195490]

Toyota suspended North American sales and production of eight models, including its best-selling Camry, due to faulty gas pedals, an unprecedented move that has damaged its once-sterling reputation for quality.

Volkswagen said on Tuesday it was aiming to grow vehicle sales in the medium term to around 8 million and to top the 10 million mark by 2018. It earmarked a pretax profit margin in excess of 8 percent.

Volkswagen preference shares were down 0.5 percent at 60.35 euros by 1233 GMT while the DJ Stoxx European car sector index .SXAP was down 0.4 percent. (Reporting by Jan Schwartz; Writing by Marilyn Gerlach)