DaimlerChrysler and Lear have agreed a temporary truce in a parts pricing dispute.

The Associated Press said Lear had threatened to stop shipping parts unless DaimlerChrysler agreed to pay more.

The companies were due in court on Wednesday for a hearing on the automaker's lawsuit against Lear, but both requested more time to work out a settlement.

Oakland County Circuit Judge Colleen O'Brien granted the request and adjourned the hearing until 1 February, AP said.

A temporary restraining order remains - requiring Lear to continue supplying seats and interior trim to DaimlerChrysler.

DaimlerChrysler took steps to sue Lear earlier this month and O'Brien issued the restraining order after the company said it would lose US$54m per day if Lear stopped shipments.

Lear said it must increase prices due to the rising cost of oil used to make plastic parts and the after-effects of hurricane Katrina, AP added.