DaimlerChrysler On Course

FRANKFURT, June 18 Reuters reported that the head of German-U.S. auto giant DaimlerChrysler was quoted as saying on Tuesday that the firm was on course to meet its targets this year.

"All-in-all, I can clearly underline the trend which we sketched out in the first quarter," Chief Executive Juergen Schrempp was quoted as saying in the Handelsblatt business daily. The company, which returned its U.S. Chrysler arm to profit in the first quarter, has been cautious in its outlook statements for the whole year after making what amounted to a profit warning in February.

DaimlerChrysler said in February, and repeated in April, that it expected an adjusted operating profit of more than 2.6 billion euros for the whole year -- double last year's earnings but well below a target of 5.5 billion-6.5 billion set in early 2001.

Schrempp, who installed German Dieter Zetsche as the first foreign head of Chrysler, also said he would keep Americans in the top echelons of the company.

"Of course there will continue to be Americans on the management board," he said in the interview with the German DPA news agency.

He reiterated that business in the United States was better than anticipated and the world's number five carmaker expected the whole U.S. market to sell 16 million cars this year, versus forecasts of 15-16 million earlier in the year.

But he said the car markets in Germany, the rest of Europe and Japan, all of which are experiencing an economic downturn, were "not satisfactory".

He also reiterated that the firm's loss-making Freightliner commercial vehicles unit would "most definitely" break even by the end of the year.