According to Focus magazine, Eaton also said that Chrysler president Thomas Stallkamp would make a good successor to Daimler chairman Juergen Schrempp who is expected to lead the new company after Eaton steps down.

The issue of executive salaries has required ongoing work by merger committees set up by the two companies because Chrysler bosses are paid substantially more than their German counterparts.

On the one hand it would be difficult to slash Chrysler salaries without executives defecting to other American car companies. But at the same time Daimler shareholders are unlikely to easily approve massive pay increases for the company's management.

Schrempp has suggested in the past that salary levels at the two companies could be equalised with some sort of performance-basedsalary scheme.

Eaton also told the magazine that Chrylser president Stallkamp was well qualified to replace Schrempp in the distant future.

"Stallkamp is very suitable one day to replace Juergen," Eaton said.

Under merger plans first announced in May, Schrempp and Eaton will co-lead the company created by the merger of Daimler and Chrysler until Eaton steps down in about three years.

It is then expected that Schrempp will lead the new company to be called DaimlerChrysler AG. No indication has been give about how long Schrempp would then lead the company.

Shareholders of Daimler and Chrysler are to meet on September 18 to vote on the merger.