The ratings on Germany-based automaker Daimler AG reflect Standard&Poor's Ratings Services assessment of the group's business risk profile as satisfactory and financial risk profile as intermediate. The ratings are supported by the strong competitive position of the group's Mercedes-Benz Cars (MBC) division that holds a leading share of the global luxury vehicle market, the broad product and geographic scope of the group's operations, and the group's good financial flexibility. A further rating strength is the strong market position the commercial vehicles unit, which benefits from the geographic diversity of its sales and broadly diversified production. The ratings are constrained, in our view, by high volatility of demand in the passenger car markets and even more pronounced cyclicality in
