MERCEDES-Benz and Chrysler cars could soon be based on the same platforms as part of a new drive to make one of the world's biggest motor manufacturers more efficient. Daimler-Chrysler is poised to follow Volkswagen's example by making use of common underpinnings for both its brands, it was revealed this week.

'There is no reason why the next generation of Chrysler cars cannot be based on running gear which is being developed for models which will replace the C-class and

E-class,' said Mercedes-Benz senior concept designer Dr Karl Liese. The man responsible for developing the Mercedes-Benz A-class supermini concept said the rationale could also be applied to power units.

Due to be completed in September, the merger of Daimler-Benz and Chrysler is likely to produce $1.4 billion in cost-efficiency savings next year, rising to $3 billion annually early in the new millennium.