The battered US auto market will eventually see sales return to levels posted before the economic meltdown, but not for at least another two to three years, the chairman of German automaker Daimler AG said Thursday.

Dieter Zetsche also said that Chrysler Group LLC — which Daimler used to own — has a challenging future ahead as it reorganises, but new technology from Italian partner Fiat Group LLC should help strengthen the US automaker's product line-up.

"There are quite a number of positive changes going for Chrysler, but certainly the environment continues to be very tough and the competition isn't forgiving at all," Zetsche said during a roundtable discussion with reporters in New York.