The ratings on Germany-based DaimlerChrysler AG reflect the company's position as a leading producer of luxury passenger cars and commercial vehicles, and its moderate financial policy. The ratings also reflect the severe challenges the company faces to bolster the competitiveness of Chrysler Group, its U.S operations, in light of the adverse secular trends affecting the North American automotive industry. DaimlerChrysler has a particularly strong global competitive position in luxury passenger cars, which it sells 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. DaimlerChrysler is the world's largest
