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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 Audi S3

Coming Soon To Our Shores With Two More Doors And A Trunk
The Audi S3 is not exactly a sales juggernaut, despite it being a bit of a legend for passionate fans of the small German premium genre. In most markets outside of Europe, people may consider such setups as the S3 three-door tested here, look at the price, and then think maybe they should just get a nice A4 sedan with greater practicality for similar cash. That certainly has been one reason Audi has never officially brought the S3 hatchback to the United States. And the 335-horsepower RS3 Sportback? Forget about it nearly everywhere but in Germanic regions, Switzerland and the UK.
All of which automatically turns the new S3 hatchback into an unattainable object of desire for many fans of the four-ringed brand. The good news, of course, for many markets not on the three-door or S3's dance card is that most of us will get a shot at buying the new S3 sedan that will be powered by the same drivetrain tested here. We reported heavily on the sedan version from the recent New York Auto Show and are convinced that there is much for North American shoppers to like.

2014 Audi SQ5

No Diesel? No Problem
With the exception of a handful of markets (including the US), the Audi SQ5 was a pioneer for the company's S/RS performance line as it was the first model to wear the badge and also get diesel power. Our general "everything is better with a diesel" mentality was put to the test when we first heard we would be getting a non-diesel SQ5 in the US (despite the availability of the diesel-powered Q5 TDI here already), but as usual we can only blame our federal emissions standards. As Audi tells it, the SQ5 TDI engine would require AdBlue to meet US emissions regulations, and the packaging of such a system just wasn't possible, so the global SQ5's diesel engine was replaced by a gasoline-powered V6 borrowed from the Audi S4/S5. To show that little, if anything, was lost in translation from diesel to gas, we headed to southwestern Colorado to spend an afternoon with the all-new 2014 Audi SQ5.
Our drive program had us taking the SQ5 from Durango, CO to the city of Gateway, before heading to Grand Junction the next morning. There's nothing like spending five hours strapped into a seat, traversing hill and mountain, to truly test a vehicle's comfort and driving dynamics. From the first touch of the SQ5's push-button starter, we knew this was no ordinary Q5. As the engine came to life with a deep burble and raspy pops, and we spent the rest of the day trying to come to terms with the fact that not everything needs a diesel. Wait. What?!