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. Based on strong second-quarter results, the group appears to be on track to meet management's target of full-year 2005 operating profit (excluding smart-related charges) slightly in excess of 2004's €5.8 billion ($7.2 billion). 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 that started to unfold
