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Audi Self-Driving Car Gets First Permit In California

Computer-driven cars have been testing their skills on California roads for more than four years - but until now, the Department of Motor Vehicles wasn't sure just how many were rolling around. That changed Tuesday, when the agency issued testing permits that allowed three companies to dispatch 29 vehicles onto freeways and into neighborhoods - with a human behind the wheel in case the onboard computers make a bad decision. The German automaker Audi was first in the state to receive a self-driving car permit and already has plans to test drive an autonomous A7 around the Bay Area, according to the Los Angeles Times. These may be the cars of the future, but for now they represent a tiny fraction of California's approximately 32 million registered vehicles. Google's souped-up Lexus SUVs are the biggest fleet, with 25 vehicles. Mercedes and Volkswagen have two vehicles each, said Bernard Soriano, the DMV official overseeing the state's "autonomous vehicle" regulation-writing process. A "handful" of other companies are applying for permits, he said. The permits formally regulate testing that already was underway. Google alone is closing in on 1 million miles. The technology giant has bet heavily on the vehicles, which navigate using sophisticated sensors and detailed maps. Finally, government rules are catching up. In 2012, the California Legislature directed the DMV to regulate the emerging technology. Rules that the agency first proposed in January went into effect Tuesday. Among them: - Test drivers must have a sparkling driving record, complete a training regimen and enroll in a program that informs their employer if they get in an accident or are busted for driving under the influence off hours. - Companies must report to the state how many times their vehicles unexpectedly disengage from self-driving mode, whether due to a failure of the technology or because the human driver takes over in an emergency. They also must have insurance or other coverage to pay for property or personal injury claims of up to $5 million. California passed its law after Nevada and Florida and before Michigan. The federal government has not acted, and national regulations appear to be years away. It's impossible to know the total number of self-driving cars being tested on public roads because, unlike California and Nevada, Michigan does not require special permits to test self-driving cars on public roads.

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 gets Q2 and Q4 badges in trademark swap with FCA

Audi has swapped trademarks with Fiat Chrysler Automobiles to snare the rights to the Q2 and Q4 badges for upcoming crossover SUVs. Audi CEO Rupert Stadler confirmed at the Detroit Motor Show that the automaker had finally persuaded FCA to release the two names that would let Audi lock up the Q1 to Q9 badges for its growing SUV family. Audi already plans to drop the Q2 name onto its MQB-based city crossover five-door this year, while the Q4 badge will slot onto the rump of a coupe-like version of the next Q3. It will also reserve the Q1 badge for a 2018 baby crossover, based around the architecture of the next A1 hatch. The A1 will share a lot of its engineering with Volkswagen's Polo-based soft-roader, dubbed T-Cross in concept form. The German company has also pounced on the naming rights for SQ versions of all of its Q-cars, along with F-Tron to cover the day when it pushes hydrogen fuel cell cars into production. Stadler insisted that no money had changed hands in order to pry the two badges off FCA, admitting that they had "each found something we needed." "We promised each other we wouldn't disclose what it cost, but it was not something they were willing to sell," Stadler said. "We tried to get it years ago and they said 'No, never,' but there is never 'never' in business. ... This year I went back to them with a proposal and we talked and there were some negotiations and then we agreed to it." Those negotiations are believed to have centered on a trademark swap with a Volkswagen Group name that FCA desperately (evidently) wants to use on a Fiat, Alfa Romeo, Chrysler, Dodge or Maserati. Asked if Audi had given FCA a trademark in return for Q2 and Q4, Stadler replied, "Something very much like that, yes." Audi has used Italian names on past concept cars that FCA could be interested in, such as the 2001 Avantissimo concept and the 2003 Nuvolari coupe. The latter was named after legendary pre-war racer Tazio, who won grands prix for both Alfa Romeo and Audi's forerunner, Auto Union. Both are unlikely trade chips, with laws in Europe preventing the trademarking of the names of actual people. There is always "quattro" (Italian for "four"), but after investing nearly four decades locking it in as an Audi all-wheel-drive name, it's just not anything like trade bait.