Can Audi pass BMW, which passed Mercedes? The ongoing race for the prime position among luxury car companies in the U.S. was won by BMW in 2011. It sold 247,907 cars and light trucks. It is an especially impressive accomplishment because the domestic brands Lincoln and Cadillac were favored by Americans for so many years. And BMWs tend to be priced well above U.S. competitor luxury cars and rival products from Japanese nameplates Lexus, Infiniti and Acura. Audi has made gains in the U.S. with its fleet of all-wheel-drive cars. And it claims it sold more vehicles worldwide than Mercedes and BMW did in 2011. It has not done nearly as well in America, and BMW’s lead is close to insurmountable. But that is what was said of Cadillac and Lincoln a generation ago.
Samsung Sales Surge
Samsung proved that it is the only real challenger to Apple (NASDAQ: AAPL) in the smartphone industry — for now. Its estimated earnings were $4.5 billion for the fourth quarter, up nearly 40% from the same period a year ago. It now has passed Apple in total global iPhone sales, and it has a legitimate chance to pass Nokia (NYSE: NOK), the top handset maker in the world. Samsung has shown it is the master of the design of Google (NASDAQ: GOOG) Android-based phones and tablets, with its Galaxy series capturing much of the top of the market.
Our Shrinking Military
Yesterday was a grim one for U.S. defense contractors such as Lockheed Martin (NYSE: LMT) and Boeing (NYSE: BA). President Obama announced that military spending would be cut by $487 billion during the next 10 years. The administration’s plan is to shrink the U.S. fighting force to a level at which it can no longer fight two large land wars. The focus of defense activity will move toward Asia and the ongoing threat of terrorism. That means fewer large arms systems will be part of the Pentagon’s future plans.
IMF GDP Forecast
International Monetary Fund chief Lagarde said the agency would cut its forecast for global GDP growth in 2012. She indicated the prime reason for the cut was the sharp slowdown in the economies in Europe. Like most experts, Lagarde believes that a recession on one continent will curtail growth on others. America, Japan and China cannot defy the gravity of low demand. The IMF, she said, will drop its forecast for worldwide expansion to below 4%.
Douglas A. McIntyre
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