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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 recalls A6, A7, and A3 in two airbag-related campaigns

Audi will recall a total of 21,978 vehicles in the US across two campaigns. The Basics: Audi's larger recall covers 21,074 examples of 2012-2013 A6 sedans with manufacturing dates between March 28, 2011, and March 25, 2013, and the 2012-2013 A7 models built between January 25, 2011, and March 19, 2013. The Problem: In examples of the sedans with heated and cooled seats, the Passenger Occupant Detection System can malfunction and prevent the passenger's side airbag from deploying in a crash. Injuries/Deaths: None reported. The Fix: Dealers will repair the Passenger Occupant Detection System. If You Own One: Audi will begin the recall in February 2016. The Basics: In the smaller safety campaign, Audi will recall 904 examples of the 2015 A3 Cabriolet built between June 5, 2014, and April 1, 2015. The Problem: The driver or front passenger seat covers might not have the correct stitching, and this could prevent the side airbag from properly deploying in a crash. Injuries/Deaths: None reported. The Fix: Dealers will replace the seatback covers on affected seats. If You Own One: Audi will begin the recall in February 2016. Related Video: RECALL Subject : Passenger Seat Occupant Detection System may Fail Report Receipt Date: DEC 08, 2015 NHTSA Campaign Number: 15V823000 Component(s): AIR BAGS Potential Number of Units Affected: 21,074 All Products Associated with this Recall Vehicle MakeModelModel Year(s) AUDI A6 2012-2013 AUDI A7 2012-2013 Details Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2012-2013 Audi A6 vehicles manufactured March 28, 2011, to March 25, 2013, and 2012-2013 Audi A7 vehicles manufactured January 25, 2011, to March 19, 2013. In vehicles with heated and cooled seats, the Passenger Occupant Detection System (PODS), used to enable the front passenger air bags, may malfunction and prevent the passenger-side air bags from deploying in a crash. CONSEQUENCE: An air bag that does not deploy as intended increases the risk of occupant injury in a crash. REMEDY: Volkswagen will notify owners, and Audi dealers will install a PODS system repair kit, free of charge. The recall is expected to begin in February 2016. Owners may contact Audi customer service at 1-800-253-2834. Volkswagen's number for this recall is 74D1.

Audi S1 nearly ready to rocket euros out of your pocket

Audi was out testing its upcoming S1 on the streets of Germany when our trusty spy photographers snapped the new, all-wheel-drive hot hatch that's set to succeed the limited-edition A1 Quattro.
Unlike the A1 Quattro, the S1 should sport a much less aggressive look overall. As shown in the spy shots, its wheel wells lack the meaty flairs of its predecessor while its rear wing is much more subdued. The wheels are more in line with what we expect from Audi's S models and its higher ride height is more conducive to common things like steep driveways and speed bumps that the 333-unit A1 Quattro might not encounter.
According to our spies, the S1 should hit the European market with anywhere from 220 to 250 horsepower, making it considerably more potent than competitors like the Ford Fiesta ST or Polo GTI from its parent company, Volkswagen (although it'll likely arrive at a considerably higher price than either of those pocket rockets). On the high end, that's roughly equal to the 252 ponies generated by the 2.0-liter, turbocharged four in the A1 Quattro