LyrArc Article Gist
Slower growth for luxury car sales in China in 2013. German carmakers BMW, Audi and Mercedes are strong in this segment.

LyrArc Article Gist
Sales of automobiles in China in July 2012 declined 12.6% from the prior month according to the China Association of Automobile Manufacturers. There are two parts of China's automobile sector, the foreign brands of GM, Toyota, VW, Ford and others, and the Chinese brands. There are 48 Chinese domestic carmakers for 30% of China's automobile market, with sales of 87,500 per brand on average, according to J.D. Powers. Many of these carmakers will not survive even with subsidies from local governments. China's car buyers prefer foreign brands because of the better quality and reliability. Foreign carmakers face an oversupply of cars as GM, Honda, Ford, VW have continued to add capacity. Total automobile manufacturing capacity is about 28.5 million cars and commercial vehicles. This is 9 million more than the expected sales in 2012, according to J.D. Powers. The most recent company adding large capacity is Ford Motor Company, which was relatively late in the Chinese market, and decided to boost capacity from 450,000 in 2011 to 1.2 million in 2015, to make it the largest manufacturing location outside of its home base of Michigan. This creates the prospect of foreign carmakers having to offer larger incentives and discounts to manage inventory and operating with higher levels of unused capacity, reducing profits in future years. Most of the plans to increase capacity were made when China's GDP growth was over 10%, it is now slowing to 7.5%....

LyrArc Article Gist
By acquiring Vodafone Japan Softbank CEO Son brought competition to the industry and challenged the duopoly of DocoMo and KDD telecom providers. After acquiring Sprint Son is taking a hands on approach to shakeup management at the company, which has lagged behind T-Mobile in building its subscriber base. After years of losses Sprint now faces the prospect of a complete makeover from the old way of doing things. Sprint is based in Overland, Kansas. Son says Sprint is like Japanese lords in feudal Japan who controlled everything in their lands, and said Sprint is a Kansas Daimyo. Masayoshi Son has asked executives to fire all the ad agencies and start over, at one point asking executives if they were stupid. Son has established shadow offices at San Carlos, California to monitor weekly progress at Sprint.

LyrArc Article Gist
The difficult outlook ahead for sales of luxury cars seen at the 2012 Paris Auto Show.