The ratings on Germany-based carmaker 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 particularly strong global competitive position in luxury passenger cars sold under the Mercedes-Benz brand. Demand for luxury vehicles is relatively recession-resistant, and pricing is favorable. Following the introduction of a series of successful new products, the company has significantly expanded its luxury vehicle sales volume and market share in recent years. The combined effect of weaker industry demand in North America, intensified price competition, aging of certain key products, relaxation of cost disciplines, and management turmoil resulted in the beginning of a precipitous collapse in Chrysler's profitability toward year-end 2000. Chrysler
