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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.

Audi already teasing, testing next R18 e-tron quattro

You can't debate Audi's record in endurance racing. With 12 victories at the 24 Hours of Le Mans, it comes second only to Porsche in the history books of the famous endurance race - only in Audi's case, all of those victories have come in the last 14 years, losing only twice: once to its partner team Bentley in 2003 and once to rival Peugeot in 2009. It's won the FIA World Endurance Championship in both of the seasons it's run so far, and has won championships in the European and American Le Mans Series, too.
That's quite a record to defend, and defend it Audi will with an evolved LMP1 racer next year. Only a week after tying up its second consecutive world championship, the German outfit is already back at Sebring this weekend testing the successor to the all-conquering R18 e-tron Quattro. Unfortunately as the new United SportsCar Championship doesn't include LMP1s, the only chance we may have to see it competing here in the United States will be at the 6 Hours of the Circuit of the Americas in September.
Audi is keeping mum on the details for the time being, releasing only this one photo and promising to reveal further details before the end of the month, but we can already discern a more streamlined shape, revised aero and reprofiled headlamps among the changes from the outgoing R18. One way or another, with Toyota upping its game and Porsche returning to top-level competition next season, Audi may be in for its toughest challenge yet - but you can bet it won't take it lying down. Scope out the press release below and watch this space for more.

These are the top luxury cars bought by people entering the segment for the first time

Let's say you just got a big promotion at work or the kids are moving out of the house, and you finally have some extra money. You decide to blow it all at once and treat yourself by upgrading your ride. Naturally, you look to a luxury automaker. What do you choose?
Models like the Audi A3 and Mercedes-Benz CLA-Class may be tailor-made to introduce buyers to the premium segment, but a new study finds that they don't garner the highest rates of non-luxury customer conquests. It turns out that a Volvo leads among folks moving up to a premium brand, and it isn't even one that's made anymore, at that.
A recent study by Polk and IHS Automotive looked at what models had the highest rates of buyers upgrading from a non-luxury segment. The information comes from its new vehicle registration data through April 2014. All ten top models boasted conquest rates of over 50 percent, but the Volvo C70 led the field with 68.01 percent of its customers coming from non-premium brands.