Standard&Poor's recently lowered its ratings on DaimlerChrysler AG and various related entities. The downgrade primarily reflected Standard&Poor's heightened concerns about the timing and extent of a turnaround in financial performance at DaimlerChrysler's key Chrysler Division. In response to massive net losses at Chrysler, which totaled approximately €2.0 billion during the second half of 2000, DaimlerChrysler has initiated extensive restructuring efforts. Standard&Poor's expects management's cost cutting targets to be at least largely achieved, notwithstanding resistance to demands for concessions from suppliers and dealers, and the constraints to downsizing of the workforce posed by existing labor contracts. However, DaimlerChrysler's ability to retain the benefits is uncertain. Even with steep price discounts, Chrysler's sales performance has proven
