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Mercedes-Benz A45 AMG shows up to fight the hottest hatches [w/videos]

Fun coincidence. On the same day that Audi announces the unveiling of its new S3 Sportback at the Geneva Motor Show, Mercedes-Benz steals the spotlight by confirming that the all-new A45 AMG will also receive its official debut early next month. Starting life as the entry-level A-Class hatchback, the A45 AMG gets the full AMG treatment, which includes numerous performance, handling and styling upgrades.
Under the hood sits an AMG-tuned 2.0-liter turbocharged I4 breathing through a sport exhaust system helping the five-door produce 360 horsepower and 332 pound-feet of torque. This engine is paired to a seven-speed AMG dual-clutch transmission and power is sent to the ground using 4Matic all-wheel drive. Mercedes-Benz says that the A45 AMG will be able to accelerate from 0-60 miles per hour in under 4.5 seconds and it will have a top speed of 155 mph; in the land of hot hatches, it doesn't get much hotter than that. For added performance and handling, AMG has retuned the A-Class' suspension and steering systems and equipped The A45 with a three-stage stability control system that is specific to this car.
Surprisingly, the exterior styling of the A-Class was already sporty enough that the new model doesn't receive too many changes to become the A45 AMG. The biggest alterations include black accents to the chin spoiler, rocker panels and mirror caps, black wheels with red-painted brake calipers and rectangular dual exhaust outlets. Inside, it doesn't take a trained eye to spot the differences. The flat-bottomed sport steering wheel and the numerous red accents throughout the cabin (including the seatbelts!) really help to make this AMG interior stand out; front passengers will also get sport bucket seats that appear to be more than supportive enough for even the most spirited driving conditions.

2014 Mercedes-Benz E63 AMG S 4Matic [w/video]

Maybe you saw our recent blog snippet on a bunch of US journos getting pulled over in the middle of nowhere in Catalunya, Spain for driving a bunch of new 2014 Mercedes-Benz E63 AMG models. By all accounts, they weren't speeding - which makes me softly guffaw. I was there in that group, yet I had taken the more direct route into the mountains from Barcelona so that I could... well, so that I could go faster. No one hassled me and I had the Autovia all to myself. And it was the goodniks - the team players - who got nabbed because Spain had decided to suddenly enforce the never enforced "must carry an international driver's license" clause of the highway code.
The departing E63 AMG with 518 horsepower and 516 pound-feet of torque from its M157 5.5-liter biturbo V8 hasn't exactly been poorly received. It isn't as crisp as, nor as pleasantly evil as its C63 AMG kid brother, but we generally accept that the heavier and larger car will always feel, well, heavier and larger.
As part of the 2014 E-Class mid-cycle redesign, Affalterbach decided to give its E63 AMG more power and torque for the occasion. The base car now gives off 550 hp and 531 lb-ft, while the hotter S version I tested (formerly the AMG Performance Pack) produces 577 hp and 590 lb-ft. The other big novelty is that E63 sedans will be available with both rear- and all-wheel drive, while all US-spec E63 wagons will be 4Matic equipped.

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.