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China probing German automakers over spare parts

The Chinese market has proven to be a boon to German luxury automakers. However, the way that the companies have allegedly been controlling their supply of spare parts has begun to draw the ire of the nation's government. According to insiders speaking to Bloomberg, officials from the country's economic planning organization have opened a probe into Audi, BMW, Mercedes-Benz and some Japanese carmakers over claimed price inflation and limiting supply.
Specifically, the investigation centers around two aspects of how the companies do business, according to Bloomberg. Investigators want to know whether the original equipment component makers are able to sell spare parts only to automaker-authorized dealers or if they are also available to independent shops. There is also the issue of whether the price markup on replacement pieces is too high. The tight controls could be partially explained by China's reputation for producing counterfeit parts.
Evidently, the investigators haven't checked parts prices at car dealers elsewhere in the world. At least in the US, paying more at the dealer for factory components just goes along with owning a vehicle. If evidence of price fixing is found, the companies could face fines the equivalent of millions of dollars, according to Bloomberg.

Startup will make your Audi A4 self-driving for $10k [w/video]

We are on the cusp of the next generation of semi-autonomous driving technology becoming affordable. Adaptive cruise control is already trickling down to the mass market, and the more sophisticated systems found on vehicles like the Mercedes-Benz S-Class are clearly coming, as well. If you're a little adventurous, live in California and drive an Audi, you might be able to upgrade to the next stage of driverless tech even sooner. A San Francisco start-up called Cruise Automation is launching an aftermarket autopilot system called the RP1 for $10,000, with deliveries starting in 2015.
The RP1 is designed for 2012 and newer Audi A4 and S4 models. Although, Cruise CEO Kyle Vogt told Autoblog in an email: "There's no reason we can't expand to other cars, and we will." The system includes a sensor pod on the roof containing cameras, radar and other sensors to scan the road ahead. It then sends data to a small computer mounted on the side of the trunk. The desired inputs are then made by actuators for the steering, brakes and throttle to control the car. A button in the cabin activates the autopilot and controls the desired speed. Not completely unlike Audi's own, developmental, semiautonomous system.
At this point, the RP1 is somewhere between an adaptive cruise control system and an autonomous vehicle. It can control all of the cars inputs and even bring it down to a complete stop and then accelerate again. However, it only works on select highways in California. "We use geofencing to limit the areas of operation to segments of highway in which we've collected enough data to ensure our customers' safety," said Vogt to Autoblog.

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.