DaimlerChrysler will be producing hybrid vehicles within three years, despite reservations about their high cost and long term future, according to Chrysler president and CEO Dieter Zetsche.

The company will launch a hybrid Dodge Ram pick-up in the USA this year, and intends to introduce a hybrid car within “two to three years”. Mercedes-Benz plans to bring a hybrid S-class to the US.

Zetsche is convinced the franchise dealer model is the best system for selling and servicing cars. “If I were invited back to this conference in 25 years, I'd find the franchise dealer alive and well, evolving and adapting, and as strong as ever – probably stronger. No-one has created a better system.” He stressed the importance of the dealer-carmaker relationship adding: “When dealers suffer, we suffer; when they succeed, we succeed.”