DaimlerChrysler Selling Detroit Diesel's Off-Highway Unit

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aimlerChrysler AG said Wednesday it was selling its German diesel-engine making subsidiary and the off-highway activities of its U.S. engine unit Detroit Diesel Corp. to a financial investor as part of a move to focus on its core vehicles business, the Associated Press reported.

The company is selling German unit MTU Friedrichshafen GmbH, which makes marine and other off-road engines, AP said.

DaimlerChrysler said it and financial firm EQT valued the sale at 1.6 billion euros — about $1.9 billion — and that it expected a cash inflow of 1 billion euros, or $1.2 billion, from the sale. It forecast a 300 million euro or $357 million boost to its net profit.

Daimler is the parent of U.S.-based Freightliner LLC, which includes Freightliner Trucks, Sterling Trucks, Western Star and Thomas Built Buses.