DaimlerChrysler Credit Rating Raised based on North American Chrysler Division Profits

S&P analyst Maria Bissinger stated that DaimlerChrysler is on target to surpass its 2003 performance "based primarily on Chryslers

Unlike most domestics and many imports, Chrysler Group is enjoying a 3.3 percent sales increase for 2004. (Photo: Trevor Hofmann, American Auto Press)

To be fair to DCX, the automakers sizable investment into Chrysler is why the Auburn Hills company recently pulled in a profit of $628 million for the second quarter of 2004 compared to the $1.1 billion loss it suffered during the same period last year.

Unlike most domestics and many imports, Chrysler Group is enjoying a 3.3 percent sales increase for 2004. Also unlike Ford and GM, all of Chryslers profits are made up from the automotive vertical and not the automakers financing division, DaimlerChrysler Services. Its domestic rivals were kept in the black solely on

Also unlike its domestic competitors GM and Ford, Chryslers declared profits are made up from the automotive vertical alone and not the automakers financing division. (Photo: Trevor Hofmann, American Auto Press)

Kevin Frazier, a spokesman for the Chrysler Group stated, "(The S&P rating) is recognition of our strength as an automotive business."

While positive news, the S&P ratings increase isnt the first of such credit boosts this year. As recently as June, two credit-rating agencies showed bullish projections for DaimlerChrysler, as reported in the Detroit News. Moodys Investors Service has strengthened its outlook from negative to stable, and Fitch Ratings modified its outlook from stable to positive. Both ratings agencies saw the positive progress at Chrysler Group as well as the automakers commercial vehicles division as the reasons behind the improved ratings.