The ratings on German automaker Daimler AG reflect the broad product and geographic scope of the group's operations, and the progress it has made since the separation of the Chrysler LLC (B/Watch Neg/--) unit one year ago. They also reflect the turnaround in recent years at the Mercedes Car Group (MCG), which enjoys a leading share of the global luxury vehicle market. Nevertheless, we believe that MCG's ambitious EBIT margin target of 10% in 2010 has become more challenging since the company reduced its full-year 2008 guidance to an EBIT margin of 8%, and visibility into 2009 is opaque sectorwide. MCG generated an EBIT of €2.4 billion in first-half 2008, representing a profit margin of 9.3%. In second-half 2008, Standard
