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Don't hold your breath for an Audi RS8

There was a time not so long ago when Quattro GmbH produced essentially one model at a time. But that time is behind us. These days it's expanding into a full-fledged performance division to rival Mercedes-AMG and BMW's M department. Quattro GmbH is currently building the Audi RS4 Avant, RS5 coupe and cabrio, RS6 Avant, RS7, RS Q3 and the TT RS coupe and roadster - not to mention the R8. And while it's showing no signs of slowing down, but the latest intel from across the pond suggests we shouldn't count on an RS version of Audi's flagship sedan.
This according to Car and Driver, which spoke to Stephan Reil, the chief engineer at Quattro GmbH. Reil says Audi works on a teutonically rigid performance formula: an RS model has to have 20 to 25 percent more power than the existing S version. Considering that the existing S8 makes 512 horsepower and the RS7 a solid 553, we're not sure Audi really needs anything more powerful. But by Reil's calculations, the RS8 would need to pack between 630 and 655 hp, which would put it well ahead of rivals like the 550-hp Jaguar XJR, the 540-hp BMW Alpina B7, the 523-hp Maserati Quattroporte and even the new 577-hp Mercedes-Benz S63 AMG - and in league only with the even more powerful S65 AMG, which in its outgoing form produced 630 hp.
The question then comes down to whether there are enough customers lining up for the S65 that Audi would want to poach away from Mercedes. Or perhaps more pertinently, whether it might end up just taking customers from the new Bentley Flying Spur, which is already offering 616 horsepower in an even more prestigious, if less performance-focused package. Either way you look at it, Audi is apparently steering clear.

Car companies may need to start curbing model proliferation

Looking at the current automotive landscape, especially from German makers, you quickly get the impression that less definitely isn't more. BMW alone offers its 3 Series platform in practically every segment possible, including the regular sedan and 4 Series Gran Coupe, which would seem to be direct competitors. Porsche might be the winner, though, with 20 different variants of the 911 listed for sale on its US website. However, some of this model madness might be reaching an end as companies begin cutting back spending or shifting money to other priorities.
According to Yahoo Finance, the offerings from the German automakers are up 25 percent over the past three years to over 200 models in Europe. The peak is expected to come around 2018 at 230 separate vehicles, according to consulting company PwC.
Amazingly, BMW, which is among the poster children for this model explosion, might be changing its tune. "I'm sure there will be points in the future where we look at certain cars and say, 'Maybe we need to think differently now,'" said head of sales Ian Robertson in an interview, according to Yahoo Finance. The statement certainly sounds shocking coming from a company rumored to have 23 front-wheel-drive vehicles all using a single platform on the way.

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.