Daimler seeks Chrysler stake sale

Chrysler has seen sales of larger vehicles fall

Daimler has said it is in talks with private equity group Cerberus to sell its remaining 19.9% in struggling US carmaker Chrysler.

Cerberus bought 80.1% of the firm in May 2007 after Daimler walked away from its huge investment.

The $7.4bn (£4.1bn) deal was struck just before a sharp slowdown in overall US car sales. The value of Daimler's remaining stake is unknown.

Chrysler is restructuring - closing factories and cutting jobs.

US consumers are moving towards smaller and more fuel efficient vehicles amid higher fuel prices.

However gas-guzzling light trucks make up about 70% of Chrysler's production volume.

The company's sales fell by almost 25% in the first eight months of 2008.