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Joint engineering efforts will continue on hybrids and powertrains between Daimler and Chrysler despite the firms’ divorce.

Although DaimlerChrysler has sold Chrysler to private equity firm Cerberus, it will retain a 19.9 per cent stake in the business and plans to continue cooperation.

The two companies will also coordinate procurement, but this may have more to do with staffing levels than shared sourcing. One of DaimlerChrysler’s most serious flaws was that it failed to realise the huge savings expected from shared parts sourcing.

Daimler chairman Dieter Zetsche said: “We’ll expand in traditional segments that are the most profitable and we’ll focus on environmental technologies. We’ll do this on our own, but will benefit from economies of scale with Chrysler.”

The transaction will cost Daimler $500 million, but it will not have to cover Chrysler’s pensions and healthcare costs.

Cerberus chairman John Snow said his firm would allow Chrysler to focus on long-term plans.