Automaker DaimlerChrysler is preparing to increase its output following an impressive 2005, a company spokesman has revealed.

While main rivals General Motors (GM) and Ford are both in the midst of restructuring plans to cut costs, Chrysler could up its production by as much as 43 per cent over the course of 2006, the spokesman claims.

The company will upgrade its current facilities to enable it to push up its production and so will not need to invest heavily in either recruitment or plant development.

However, despite the bullish approach to the current slowdown in the automotive industry, DaimlerChrysler's chief executive Dieter Zetsche told Reuters that he expects a flat car market in 2006.

Speaking in an interview while at the North American International Auto Show, Mr Zetsche commented: "Altogether we expect more or less the volume of the year 2005, obviously more growth in developing markets and a kind of stagnant volume situation in the Triad [markets of the United States, Europe and Japan]."

Chrysler saw overall sales increase by five per cent in 2005, compared to falls at both GM and Ford and its intention to up production highlights the company's aim to go head-to-head with its main rivals.


Ÿ Adfero Ltd