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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.

2016 Audi A6 First Drive [w/video]

The Audi A6 could be seen as a singular kind of sleeper. It sells in volumes that are one-half to one-third those of its German competition. The sedan doesn't command a conversation much less the imagination, its history bereft of iconic brand identifiers. Think of the way the E28 BMW 5 Series turned the segment into something to be proud of, or those double headlamps from the W210 Mercedes-Benz E-Class, or that other E from 1986 simply known as Der Hammer. There is currently no RS6 sedan in the US to draw halo attention to the clan. And it was the first in its segment to slip into a design lassitude such that you had to check the badge to make sure it wasn't a different Audi. However, I look at the A6 from the other side: it's an underappreciated gem. With the 3.0-liter supercharged V6, it's a thoroughly fun steer. It has more power and torque than the competition. I think it has the finest interior. It's probably my favorite sedan in the segment considering how many boxes it checks before you cross the bridge to things that begin with S, M, and AMG. But you have to get to know an Audi in order to comprehend what it possesses, and the "product improvement" rolled out for the 2016 A6 won't change that. I'll call these "blind spot updates," because someone needs to point out where they are, and even then you've got to work to see them. Nevertheless, they're there, in places like the wider grille, new headlights and taillights with revised LED DRL signatures, new bumpers, side sills, rockers, and trapezoidal tailpipe finishers. The interior and driver assistance systems get gussied-up. The interior and driver assistance systems get gussied-up, too. The base A6 2.0T can be had with driver aids now – Audi pre-sense comes standard, the night vision assistant will identify animals, and the blind spot monitor works with lane keep assist to give you even more warning before changing lanes. There are two new colors and new inlays, like the layered walnut on the tester I drove, which is an upper-tier luxury feature that's finally filtered downstream. The biggest interior rework comes via the MMI system, which gets the Nvidia Tegra 3 quadcore chip pushing graphics to a retractable, eight-inch touchscreen. The additional processing power allows for new features like expanded codec playback – you can now play uncompressed .flac files straight through the stereo.

VW Group plan puts Porsche in charge of a 'super-premium' division

An Automobile report looks into what's happening on the organizational and technical sides of the Volkswagen Group, and what those changes could mean for the premium brands. The wide-angle view is that Porsche appears to have been anointed to "coordinate the future activities" at Audi, Bentley, Bugatti and Lamborghini. Audi would cede Lamborghini guardianship to Stuttgart, and Ducati — via a new concern called Ducati Enterprises — would become the shepherd for VW's other Italian investments. Executives target Jan. 1, 2019, to complete the reshuffle. VW wants to save a boodle by tying up four of its five top-tier brands, and putting the one with the highest ROI in charge. Porsche, within its own house, wants to reduce expenditures by $2.3 billion per year over for four years, the savings already earmarked for improving internal processes like R&D and production. Having Porsche share those gains as well as lead development of platforms, components and future-tech strategies for the sister sports car brands could benefit everyone. In the near-term, the brands have their own plans: Bugatti CEO Stephan Winkelmann is said to want a Chiron Superleggera, a roofless and "completely reskinned" Chiron Aperta, and a track-only Chiron SS. The Superleggera could take the Chiron Sport's and Divo's Jenny Craig routines even further. The Aperta seems a natural successor to the Veyron Grand Sport, a natural evolution of the recently introduced Sky View roof, and a reskin might include numerous Divo cues. It's also said Bugatti's considering "an all-electric high-end model" in conjunction with Porsche, Rimac, and Dallara, but name one supercar or hypercar manufacturer that isn't considering a lightning-fast EV. Lamborghini, deep into work on follow-ups for the Huracan and Aventador, might get a bit of a bump with the new plan. The carbon "monofuselage" for the next V12 flagship is said to be too far developed and too complex to scrap. It puts two electric motors on the front axle, batteries in the middle, and a naturally aspirated V12 with around 770 horsepower plus another e-motor with 402 horsepower in back. The Huracan is said to get a version of the same carbon architecture at the moment, but the corporate reorganization might press pause on it. Automobile says options include continuing the Huracan/ Audi R8 twinning, but that depends on Audi saying "Ja" to a third-gen R8 with Lamborghini bones.