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DaimlerChrysler says Chrysler misses earnings target

FRANKFURT, Feb 19 (Reuters) - DaimlerChrysler AG said on Thursday its struggling U.S. unit made an operating loss of 506 million euros ($644.9 million) last year, missing its target for a small profit.

DaimlerChrysler also said it was aiming for a slight increase in group 2004 operating profit from its ongoing business.

Chrysler, facing a U.S. price war and fierce competition from Japanese rivals, has long been a headache for its German parent, which reported group results earlier this month.

The group spent 469 million euros on continuing restructuring at Chrysler last year.

Profit at Mercedes, DaimlerChrysler's main source of income in recent years, was 3.126 billion euros, while its trucks business posted operating profit of 855 million euros.