The ratings on Germany-based automaker DaimlerChrysler AG reflect the broad product and geographic scope of its automotive operations. The ratings also reflect the turnaround in progress at Mercedes Car Group (MCG), which enjoys a leading share of the global luxury-vehicle market. MCG generated an operating profit of €1.3 billion in the fourth quarter of 2006, bringing the full-year total to €2.4 billion (from a loss of €505 million year on year). Staff cuts in Germany in the context of the CORE restructuring and efficiency enhancement program, and expenses relating to the discontinuation of the smart forfour and realignment of the smart fortwo, affected profits at MCG by €1.2 billion in 2006. This year, Standard&Poor's Ratings Services expects profitability
