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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.

Audi TT Quattro Sport Concept takes the next-gen to the extreme

There's little doubt that the new Audi TTS and its 310-horsepower, 2.0-liter, turbocharged four-cylinder will be very quick when released to the general public. As a means of reminding us that Audi can do much more with the little TT, though, the German manufacturer has presented this, the TT Quattro Sport Concept, alongside its litter of new sports cars.
Complete with a 420-horsepower, 2.0-liter, turbocharged engine - yes, it really puts out 210 horsepower per liter - the TT Quattro Sport can snap to 62 miles per hour in just 3.7 seconds. 331 pound-feet of torque is also on offer, meaning this one-off TT outguns the TTS by 110 horsepower and 51 pound-feet of torque.
An S-Tronic transmission shuffles the power about, while the car itself rides on a lowered and stiffened suspension. 20-inch alloys are featured with centrally locking, racing-style hubs. Those racy wheels are housed in wells that have had their arches stretched an additional 1.18 inches, which, along with the lowered suspension, contribute to the TT's aggressive looks.

Audi Prologue concept goes for A9, we give it a ten

If you've been waiting for Audi to roll out a new design language, you need wait no longer as Ingolstadt is displaying just that at the Los Angeles Auto Show this year with the Prologue concept you see here.
Penned by Audi's new design chief Marc Lichte, the Prologue is earmarked to introduce a shift (if not quite a complete change) in design direction for the German automaker. The trapezoidal grille sits wider and lower than on existing models, with the wedge-shaped laser headlights positioned higher above new air intakes with blade elements. The profile rests balanced across its wheelbase to visually emphasize the all-wheel drive that is part of Audi's DNA, with flared arches inspired by the legendary Ur-Quattro. The rear section is inspired by yachts, angled forward to suggest motion, with a narrow strip of LED taillights, full-width diffuser element and twin trapezoidal exhaust tips.
Inside it's all light and surgically clean, with a horizontal dashboard integrating four touchscreen displays running its full width. The system even allows the passenger to select the route for the navigation system and swipe it on over to the driver's display. The headrests on the rear seats and the "sound spoiler" on the rear shelf deploy only when needed, unobstructing the rear view when not.