Leading position in the relatively recession-resistant luxury vehicle industry; Leading position in the global commercial vehicle industry; Broad product and geographic diversity in the automotive industry; Moderate financial leverage; and Above-average financial flexibility. Long-term uncertainties facing its Chrysler Group, given intensifying competitive pressures, although Chrysler's performance has stabilized recently; Declining profitability of Mercedes Car Group due to quality issues and slow sales of the smart brand vehicles; Longer-term uncertainty about the group's cooperation with Mitsubishi Motors Corp. (MMC) in small and midsize passenger cars, given MMC's collapsing sales volume and marginal credit quality; and Burdensome unfunded pension and retiree medical liabilities. The ratings on DaimlerChrysler AG reflect the broad product and geographic scope of its automotive operations, including its well-established
