DaimlerChrysler says it is still on track to raise its profits from last year's £4.2bn result – but admits the going is tough.

The company says its preliminary figures for the first quarter of this year were "encouraging".

"It has become much more difficult to reach the targets we have set ourselves," said Chief Executive Juergen Schrempp in a statement ahead of the company's annual shareholder meeting.

"Nonetheless we will make every effort to achieve them."