DaimlerChrysler chairman Dieter Zetsche confirmed on Wednesday that the company has been in talks with potential buyers for its struggling Chrysler unit and pledged to continue the restructuring that will make the U.S. subsidiary profitable.

"In this context, I can confirm that we are talking with some of the potential partners who have shown a clear interest," Zetsche told the company's annual shareholder meeting in Berlin.

However, Zetsche did not disclose details about the talks, noting that "But it is also true that we need to keep all options open, and that I cannot disclose any details, because we need to have the maximum scope for maneuver."

The management requires "the greatest possible flexibility so that we can identify and then professionally implement the best solution," he said.

According to the U.S. daily Detroit News, only three potential buyers, including private equity firms Cerberus and Blackstone, and Canadian car parts maker Magna, had submitted a firm offer last week.

The newspaper said that DaimlerChrysler was aiming to start exclusive talks with one potential buyer by the end of this month and hoped to raise around eight billion dollars from the sale.

So far no prominent buyers has emerged, but reports say Canadian auto-parts supplier Magna International Inc. has submitted a bid to buy the business for as much as 4.7 billion dollars.

Zetsche told the shareholders that Chryster's restructuring plan, including 13,000 job cuts, is moving forward so that the company could return a profit by 2008.

Meanwhile, a shift in the DaimlerChrysler's development strategy is necessary, Zetsche said, adding that the company's long-term goal was developing emission-free vehicles.

"The crucial factor was the unforeseeable shift in demand to smaller, more fuel-efficient vehicles which was triggered by increased gas prices in the U.S.," Zetsche said.

DaimlerChrysler, the world's fifth bigger carmaker, was formed through a 36-billion-U.S. dollar merger of Daimler and Chrysler.

The group reported a 4.6 percent sales decline in March.

On Feb. 14, Zetsche declared that the German-American automaker was considering "all options" for its Chrysler unit, which lost 1.5 billion US dollars in 2006.

The company has also said it is interested in using alliances and partnerships to help Chrysler cut costs and expand sales in international markets.

Source: Xinhua