DaimlerChrysler has detailed figures for its sales performance in March which suggest the tough climate for the automotive industry is set to continue.

In a statement to shareholders assembled in Berlin DaimlerChrysler said that despite encouraging signs in the first quarter the company was experiencing difficulties in meeting its forecasts.

In February the company said it aimed to lift its adjusted operating profit in 2003 from last year's level of $6.14 billion.

However, chief executive Juergen Schrempp told shareholders at the group's annual meeting yesterday (April 9th) that it had 'become much more difficult to reach the targets we have set ourselves'.

'The US market for passenger cars and light trucks has been extremely difficult and competitive,' he explained.

Weak economic conditions and subdued consumer sentiment have dampened demand for vehicles in Daimler's most important markets in America and western Europe, with the conflict in Iraq further unsettling the sector.