DaimlerChrysler AG has posted a profit of £111m for the fourth quarter, rebounding from a £25.7m loss a year earlier.

Analysts say the results suggest the company may be feeling the effects of the incentive programs, including cheap credit, being offered to sell cars in the United States and falling demand for luxury cars in Europe.

Company executives have insisted that the plan to return the Chrysler division to profitability, which has involved the launch of new models and cutting 26,000 jobs, is ahead of schedule.

Sales slipped 9 per cent to £24.3bn in the fourth quarter from £26bn a year earlier.