Along with the Chrysler improvement, DaimlerChrysler's results were bolstered by a 10 percent increase in profits at its Mercedes-Benz unit, which earned about $700 million.

The company's Mercedes-Benz unit saw its sales rise 6.8 percent, to 16,732.

Daimler's Mercedes-Benz unit builds luxury cars and heavy-duty trucks and excels at building diesel engines.

He has experience in the United States, including running sales and marketing operations for Daimler's Mercedes-Benz unit.

Daimler's Mercedes-Benz unit eked out a 2 percent increase in operating profit in the second quarter, based largely on robust sales of its E-class sedan.

Daimler Benz's Mercedes-Benz unit saw its sales rise 45 percent, while those of BMW rose 19.9 percent.

Mr. Eckrodt has worked for more than three decades at Daimler, and was an executive at its Mercedes-Benz unit.

The owners had to sell almost all of their buses (including newly-acquired Mercedes-Benz units) to Autobus Transport Systems.

The job losses will fall on the struggling Mercedes-Benz unit.

The Mercedes-Benz unit of Daimler-Benz A.G., reported a 14.6 percent increase in sales.