"It's more likely a joint venture or acquisition or something that will help us grow over there," he said of the Asian market.

Eaton said any such deal would occur later rather than sooner but he did not specify a time-frame.

DaimlerChrysler has been rumoured to be in merger discussions with struggling No. 2 Japanese automaker Nissan Motor Co. Ltd., but Eaton told reporters at the North American International Auto Show in Detroit that the talks have focused on heavy truck maker Nissan Diesel instead.

Eaton said a car smaller than Mercedes' A-Class is needed for developing markets in Asia and Latin America, and said the world's fifth largest automaker was exploring a number of options. He added that the company's concept CCV vehicle, a car built from plasticcomposites, was still one of the alternatives. "I don't know which alternative will ultimately survive," Eaton said. "We know to really grow to what we want to be over there (in Asia), it takes a vehicle smaller than what we have."