DaimlerChrysler has admitted it paid bribes - or 'improper payments' - after an internal investigation sparked by an insider's allegations that the carmaker had a slush fund to bribe foreign officials.

Daimler said several employees had been fired or suspended over bribes paid 'primarily' in eastern Europe, Asia and Africa. It announced an overhaul of ethics controls and said it was taking steps to avoid a repetition of the scandal.

The admission of the payments, after an 18-month investigation, could lead to fines and possible criminal action in the US and Germany.