DaimlerChrysler AG's ratings reflect the company's position as a leading producer of passenger cars and commercial vehicles, and its moderate financial policy. DaimlerChrysler has a strong competitive position globally in luxury passenger cars. Demand for luxury vehicles is relatively recession-resistant, and pricing is highly favorable. Due to a series of highly successful new product launches, DaimlerChrysler has been able to significantly expand its luxury vehicle sales volume and market share in recent years. The company is represented in the North American mass vehicle market through its Chrysler-related brand operations. However, the Chrysler division incurred massive operating losses--€2.0 billion (US$1.9 billion)--during the second half of 2000. Consequently, DaimlerChrysler has been forced to initiate extensive restructuring efforts. Notwithstanding resistance to demands for
