DaimlerChrysler has reported an unexpected sharp rise in third-quarter operating results, as new products and efficiency savings lifted profits at its Mercedes car division.

Mercedes’ operating profits were €436m (£296m), compared to €304m (£207m) in the same quarter a year before. Sales were up 6% at 310,000 vehicles, with the positive trend expected to continue in the final months of 2005.

"The better profitability was due in particular to the new products and efficiency improving measures," DaimlerChrysler said.