The ratings on DaimlerChrysler AG reflect the broad product and geographic scope of its automotive operations. Over the past year, the group has benefited from the cyclical rebound in its commercial vehicle markets, a competitive resurgence at Chrysler, and highly favorable conditions for its financial services operations. Operating earnings approximated a very strong €7.0 billion ($9.1 billion) in 2004, up from €5.1 billion in 2003 (both before special items), and although earnings could weaken somewhat in 2005, profitability is expected to remain satisfactory. The ratings, however, also reflect the problems currently besetting the group's luxury vehicle unit, the Mercedes Car Group. Mercedes Car Group enjoys a leading share of the global luxury vehicle market–-a market that is relatively recession-resistant. Developments
