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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.

Mercedes-Benz Concept GLA gets official ahead of Shanghai

Mercedes-Benz has something special planned for the Shanghai Motor Show - a new CUV concept that we first saw when it leaked on the internet yesterday. The GLA Concept compact crossover will hit the show stand with a turbocharged 2.0-liter four-cylinder engine producing 208 horsepower and 258 pound-feet of torque mated to a seven-speed dual clutch transmission and 4Matic all-wheel drive, and likely previews a new production model that we've already spotted testing.
That's not news, but the laser-based headlamps with video-projecting capability certainly are. Mercedes-Benz says the array can project any image or video onto a screen, which is handy since there are a pair of HD cameras mounted to the roof rack. The cameras can be removed and taken with you on all sorts of adventures. The lamps also feature a visible cooling system comprised of a series of fans, and the system helps give the headlights their "sparkle" effect.
Step indoors and the GLA offers up the interior of a high-quality crossover, complete with contrasting leather and plenty of aluminum. The automaker says the cabin was inspired by saddle craftsmanship with "more than 65 feet of hand-stitched seams to hold the raw edges of the leather together."

BMW expects China to pass US as its top market in 2013

When you combine two billion citizens, 100 cities with more than a million inhabitants and an economy that's as unrestrained as Jim Cramer on an Adderall binge, China's explosive auto industry growth shouldn't be a huge surprise. Audi already lists the communist country as its largest market, while Mercedes-Benz is expecting it to be there in the next few years. Now, according to a report from Automotive News, BMW is expecting the People's Republic to overtake the United States in sales by the end of 2013.
We already discovered the extent that BMW is going to in establishing a dedicated Chinese stronghold, when we explored BMW's Shanghai-based DesignWorks studio ahead of April's Shanghai Motor Show. And while we argued that DesignWorks Shanghai hasn't really borne fruit, it isn't due to a lack of sales.
BMW China has seen a 16-percent jump in year-over-year sales, lead by a 28-percent gain in 5 Series sales. Part of BMW's growth strategy comes from an ever-expanding dealership network. Remember those 100 cities we mentioned with over one million people? According to Karsten Engel, CEO of BMW's Chinese operations, those 100-million-plus city dwellers don't have access to a premium dealership.