The ratings on Germany-based automaker DaimlerChrysler AG reflect the broad product and geographic scope of the group's operations, as well as the turnaround in recent years at Mercedes Car Group (MCG), which enjoys a leading share of the global luxury-vehicle market. MCG generated an EBIT of €2.0 billion in the first six months of 2007, representing a profit margin of 8.1%. This exceeds management's originally stated target of 7% for 2007. In the second half of 2007, Standard&Poor's Ratings Services expects profitability at MCG to remain at a similarly strong level, supported by new model launches and overall quality improvements. The new smart fortwo model, which was launched in Europe in April 2007 and will enter the U.S.
