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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 A45 AMG is Affalterbach's first big leap into the little pond

The recent history of AMG is turning out amped-up versions of Mercedes-Benz offerings that would hardly ever be mistaken for their sedate counterparts. Sure, you'd need to pay attention to pick a G-Class from the G63 AMG, but dual side-pipes are a quick giveaway. The Mercedes-Benz A45 AMG is not only a new era in Affalterbach's attention on smaller cars, it is probably also the most subtle transformation we can think of in the line-up.
Low and chunky enough in standard guise to make a sporting impression, the aesthetic makeover is confined to black trim around the lower rim of the hatch, black wheels with red brake calipers and a single, rectangular exhaust tip on either side of the diffuser. It's easier to make a positive ID inside, where the flat-bottomed steering wheel, red seatbelts and red-rimmed details say, "You know what I am..."
If the car is running, though, it won't take but a second. The 2.0-liter turbo spitting 360 horsepower and 332 pound-feet will grumble through a sport exhaust at idle, and bellow through the same on it's way to a 0-60 time of less than 4.5 seconds. And if you need something that looks a little harder - and you want those quad pipes - then the A45 AMG Edition 1 is the treasure you seek. There's a press release below for all the info you'll need until the hot hatch goes on sale in Germany later this year, and photos for the rest of us while we wait to find out if we'll get a chance to buy it.

Carlsson turns Mercedes-Benz SLK into 610-HP hill-climb clawer

Carlsson's race-tuned versions of the Mercedes-Benz SLK have been taking checkered flags for years, and we won't be surprised if its SLK 340 hill climber fares any different. Developed by multiple German and Swiss hill climb champion Reto Meisel, the carbon-bodied SLK 340 with lightweight brakes and a closed underbody weighs 1,716 pounds. Propelling that tiny bit of weight is a 3.4-liter V8 from Judd with 610 horsepower, and it rolls on 18-inch wheels shod in Avon tires.
It will debut at the Geneva Motor Show before beginning its racing campaigns in the summer. This one won't just tear up roads in Europe, though - Meisel says he plans on bringing it to the Pikes Peak International Hill Climb. The press release below has more details.