Chrysler sell-off talks confirmed

Chrysler has suffered from changing consumer demands

German car giant DaimlerChrysler has confirmed for the first time that it is in talks to sell its struggling US Chrysler business.

Chief executive Dieter Zetsche said the firm was "talking with some of the potential partners who have shown a clear interest" in Chrysler.

The iconic US carmaker, which was acquired by Daimler in 1998, reported a $1.5bn (£776m) loss last year.

Pressure has been mounting on the firm's German bosses to sell Chrysler.

The world's biggest carmaker, General Motors, and Canadian engineering firm Magna International have been linked with possible bid moves for the Detroit-based firm.

Along with big US rivals such as Ford, Chrysler has been hit by higher fuel prices and a move in consumer demand away from gas-guzzling sports utility vehicles and trucks to smaller, more fuel-efficient cars.

In February, DaimlerChrysler revealed plans to cut 13,000 US jobs and close two factories as part of renewed attempts to turn the company around.

"It is also true that we need to keep all options open and that I cannot disclose any details," Mr Zetsche said, ahead of DaimlerChrysler's annual shareholder meeting in Berlin.

"We need to have the maximum scope for manoeuvre," he added. "This means, that after reviewing all options, we will finally decide for the option that best meets our criteria."