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Is Audi getting complacent and suffering from brain drain?

The argument is made in a Reuters article: Audi is falling behind other luxury brands, such as Mercedes-Benz and BMW, due to a lack of research-and-development spending and "brain drain," or the migration of top executives and R&D chiefs to other parts of the Volkswagen Group. Reuters notes that Audi's current R&D chief is the third in 16 months.
Audi, which contributed to 40 percent of VW Group's $11.6 billion in profit the first nine months of the year, is delivering cars at a record pace: 1.31 million were delivered from January to October 2013 versus BMW's 1.35 million. Yet Audi, Reuters reports, doesn't have a halo car akin to BMW's new electrified i3 and i8 or an answer to Mercedes' plug-in-hybrid S-Class, and the R&D spending at Audi is less than BMW and Mercedes by a fair margin. It's noted in the article, however, that Audi benefits from other R&D spending within VW Group.
Reuters mentions that BMW "trumpets its new 'i' series" and the new Mercedes CLA and GLA ranges are winning "rave reviews" as part of its argument that Audi's recent lack of technological innovation could hurt future sales. Those cars do pack tons of new technology, some of which are firsts for mainstream production cars. But last time we checked, the i3 could be causing BMW's stock to slide, the CLA isn't receiving the rave reviews that Reuters would have you believe and the GLA hasn't been reviewed yet.

2013 BMW X1

A Tasty Bit Of Old School For The New School
Against the backdrop of fervent hand-wringing from brand purists, BMW is on the cusp of finally offering front-wheel-drive vehicles. While that's a shock to the constitution, many are pointing to the company's fine-handling Mini offerings as an article of faith that it can get this drivetrain paradigm shift right. That may be true, but there's an even more important lesson that Mini has taught the decision-makers in Munich: how to make real money on small cars.
Before Mini came along, BMW - along with seemingly every other premium European automaker - never really figured out how to coax big dollars out of American wallets without developing cars that had large footprints, at least those other than sports cars. While the automaker really got rolling in America on the strength of little bantamweights like the 2002, it veered away from small cars sometime in the '80s. BMW subsequently crashed and burned with the cut-and-shut 318ti built off its E36 3 Series and, good as it is, the 1 Series hasn't given the company meaty volume or profits, either. Among other brands, the Audi A3 has never rung up big numbers, and the less said about the painful sales figures of the Volvo C30, the better. But Mini has beat the odds, blazing a more affordable and evidently compelling trail. As of late, the company's Countryman softroader has been a massive hit worldwide. No surprise then that BMW has reconsidered bringing over its smallest softroader, the X1, to the US.

BMW 328d confirmed for New York debut

Late last year, some of BMW's future diesel plans for the US market were leaked, and we learned that a diesel-powered version of the 3 Series sedan (pictured above in 335i guise) would be coming in the first quarter of 2013. That report appears to be holding true, as BMW has just confirmed the debut of the oil-burning 328d sedan as part of the company's New York Auto Show plans.
The 328d will be powered by a turbocharged four-cylinder diesel engine good for 180 horsepower and 280 pound-feet of torque. The rear-wheel-drive sedan will hit 60 miles per hour in 7.2 seconds and fuel economy numbers could "well exceed" 40 miles per gallon. (Official EPA numbers will be released closer to the car's launch.)
Elsewhere on BMW's New York stand, the company will show off the 3 Series Gran Turismo that debuted at the Geneva Motor Show earlier this month, as well as the Concept Active Tourer that we first saw in Paris last fall. Scroll down for the official press blast.