updated 1/8/2006 7:48:10 PM ET 2006-01-09T00:48:10

U.S.-German automaker DaimlerChrysler sold more than 4 million vehicles in 2005, the company said Sunday, setting a new record and increasing overall global sales by 3.8 percent.

The increase was boosted by Daimler's U.S.-based Chrysler, which sold 2.83 million vehicles worldwide in 2005, up 4.7 percent from the previous year.

Even the carmaker's flagging luxury Mercedes line posted an increase of 1.7 percent in 2005, selling 1.22 million vehicles globally, it said.

"Both the Chrysler Group and the Mercedes Car Group recorded sales growth around the world in 2005, despite the difficult market environment in the automotive industry," said DaimlerChrysler head Dieter Zetsche.

Copyright 2005 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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