Daimler agrees to name change with Ford

DaimlerChrysler has cleared an obstacle to renaming itself Daimler after striking a deal with Ford Motor, whose Jaguar brand owns the name, both companies confirmed on Wednesday.

The deal, agreed about three months ago in conjunction with the German carmaker's sale of control of its US Chrysler unit to Cerberus but not widely reported, saw it pay an undisclosed "financial consideration" to Ford, a DaimlerChrysler spokesman told the Financial Times.

A Jaguar spokesman confirmed the agreement, but said that Ford was not giving details of how much it had been paid for the rights. Jaguar acquired the name in 1960 when it bought a British luxury car manufacturer named after pioneering German engineer Gottlieb Daimler, whose German company was to become part of Daimler-Benz.

Jaguar, which Ford is seeking to sell as it focuses on turning around its lossmaking core US operations, still makes some top-end cars branded Daimler. The agreement will allow the German carmaker to use the name as a trade or corporate name, but does not affect either its or Ford's existing right to use the Daimler name for a product, Reuters reported.

DaimlerChrysler's shareholders are due to vote on the proposed name change at a meeting on October 4. The move has been criticised by some in Germany who want the company's name to revert to Daimler-Benz.