The ratings on DaimlerChrysler AG 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 global position in luxury passenger cars. Demand for luxury vehicles is relatively recession-resistant, and pricing is favorable. Due to a series of successful new products, DaimlerChrysler has significantly increased its luxury vehicle sales volume and market share in recent years. The company is represented in the North American vehicle mass-market through its Chrysler-related brand operations. Difficult fundamentals in the North American auto industry add to uncertainties about the timing and extent of the turnaround at DaimlerChrysler's largest operating unit, the Chrysler Group. Chrysler's market share has declined significantly during the past
