DaimlerChrysler AG's ratings reflect the company's strong competitive positions in luxury passenger cars, which it sells under the Mercedes-Benz brand, and in commercial vehicles, of which it is the world's largest producer. The ratings also reflect the clouded prospects of the Chrysler Group, through which DaimlerChrysler competes in the difficult North American mass-market vehicle sector. The Mercedes Car Group enjoys a leading market share in the luxury vehicle market, a solid brand image, and broad geographic diversity of sales. Markets served are relatively recession-resistant. Mercedes' profitability has been robust and broadly stable in recent years, despite heavy investment to renew and expand its product range--investment that could enable some earnings growth beyond the next year. Mercedes' exposure to foreign currency
