DaimlerChrysler fails to drive into black in US

German car manufacturer DaimlerChrysler failed to break even in its troubled United States Chrysler division in 2003.

The company said the operation lost €40m at operating level, before restructuring costs of €469m.

Chrysler has been forced to defer profits again for a year after last year's expected €2bn write-off.

Its flagship brand, Mercedes, made operating profits of €3.1bn in 2003 up from €3bn in 2002 and expects to increase business volume and earnings in particular from 2005.

The heavy truck market in the US helped boost income as the commercial vehicles division returned to an operating profit of €855m - against a loss of €0.3m the previous year.

DaimlerChrysler's financial services sector made operating profits 20% higher at €1.2bn, as it benefited from low interest rates and cost-cutting.