The head of DaimlerChrysler's Chrysler unit on Thursday said that Chrysler is still "heading for" a small profit for 2003, although he sees "significant risks" to that outlook, Reuters reported.

Chrysler chief executive Dieter Zetsche stood by the forecast that the US unit of the German car maker has given since it posted a surprising $US1.1 billion loss for the second quarter, the report said.

"We are heading for, and striving for ... a small profit, but we see significant risks to accomplish that," Zetsche told Reuters at the production launch of the new Dodge Durango SUV in Newark, Delaware.

He declined to elaborate, saying the company was in a "quiet period" ahead of its third-quarter earnings results, Reuters added.

The news agency noted that many analysts have questioned whether Chrysler will reach its earnings target this year - some have suggested that another restructuring may be in store.

A profit-eating price war, high productivity costs compared with Asian rivals, and falling sales have all hampered Chrysler's efforts to return to long-term profits and, last month, Toyota outsold Chrysler for the first time in the US market, Reuters added.

On Wednesday, Zetsche told Reuters in an interview that Chrysler was still on track to save an additional $1 billion through cost cuts this year in addition to its restructuring, which has reduced its work force by 20% since 2001.