Daimler Head: Years For US Market To Fully Rebound

DAN STRUMPF

NEW YORK (AP) — The battered U.S. auto market will eventually see sales return to levels posted before the economic meltdown, but not for at least another two to three years, the chairman of German automaker Daimler AG said Thursday.

Dieter Zetsche also said that Chrysler Group LLC — which Daimler used to own — has a challenging future ahead as it reorganizes, but new technology from Italian partner Fiat Group LLC should help strengthen the U.S. automaker's product lineup.

"There are quite a number of positive changes going for Chrysler, but certainly the environment continues to be very tough and the competition isn't forgiving at all," Zetsche said during a roundtable discussion with reporters in New York.

Auto sales in the U.S. have been pummeled by the economic recession, with per-capita sales levels falling to levels not seen in a quarter century earlier this year. That helped force Chrysler and crosstown rival General Motors Co. to file for Chapter 11 bankruptcy protection over the summer.

But auto sales began showing signs of stability in October. They were flat compared with last year and many automakers, including GM, posted positive sales numbers.