2010 Audi Q5 Premium on 2040-cars

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2015 Audi Q3 is ready to woo America's young and upwardly mobile

You can hardly blame Audi for its decision to finally bring its Q3 compact crossover to America, even though it's been on sale in other global markets since 2012. CUVs of all stripes are red hot, and the number of players in the US entry-level premium segment is mushrooming. Rapidly growing Audi simply can't afford to be left out of the discussion in favor of vehicles like the BMW X1, Land Rover Range Rover Evoque, and even small near-luxury entries like the Buick Encore, if only because capturing these customers could result in subsequent sales of more profitable models down the road.
Audi evidently intends to attract these new, younger customers by spoiling them in decidedly unGermanic fashion: by offering lots of standard equipment. Peruse the spec sheet on base models from rivals and you'll see things like manually adjusted faux leather seats, conventional projector headlamps, and little in the way of frills. By comparison, the 2015 Q3 comes with an embarrassment of standard features, including heated and power-articulated leather seats, panoramic moonroof, Xenon headlamps with LED accents and keyless start.
First impressions of the four-cylinder, 200-horsepower Q3 revealed here at the Detroit Auto Show are very positive, with a rakish (if overly familiar) shape and a fair amount of utility with up to 48.2 cubic feet of storage with the rear seats folded. If Audi can price the Q3 similarly to the entry-level BMW X1 sDrive28i ($31,825 delivered) when it arrives this fall, we think it'll sell like hotcakes - just like its Q5 big brother.

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 fires head of R&D, Wolfgang D"urheimer

According to Car and Driver, citing a report in Germany's Der Spiegel magazine, Audi has fired Wolfgang Dürheimer, the brand's head of research and development.
Dürheimer had originally signed on as Audi's R&D boss in September 2012. Prior to that, he had served as the head for both Bentley and Bugatti, and was formerly the development chief at Porsche (where he is credited with helping get the original Cayenne into production, a move that ushered a new era of profitability for the company). Dürheimer moved to Audi following a management shakeup within the Volkswagen Group in mid-2012.
During his time at Bentley, Dürheimer spearheaded the brand's efforts to launch an SUV. But at Audi, he reportedly quickly put a stop to costly projects such as the R8 E-Tron and the rotary range-extender engine for the A1 E-Tron. Furthermore, Car and Driver reports that Dürheimer shuffled the reporting structure within the brand's design department, and that VW Group CEO Martin Winterkorn had apparently disagreed with him several times on the styling direction for the brand.