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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 SQ5 comes to America with 354-hp gasoline engine

When we first saw the Audi SQ5 TDI unveiled back in June, we could feel that pit in our stomach. Here sat a powerful, sporty, mean-looking crossover, and we just knew that Audi wasn't going to be bringing it to the US. And we were right. While we won't be getting the diesel version of this crossover with its 479 pound-feet of torque, we will instead be getting a gas-powered, supercharged V6 - the same powertrain as the S5 - and that's a mighty fine consolation prize if you ask us. The US version of the 2014 Audi SQ5 will debut next week at the Detroit Auto Show, and it will go on sale this fall.
Ditching the diesel engine, the US-bound SQ5 loses some torque but gains plenty of horsepower with Audi quoting power ratings of 354 horsepower and 346 lb-ft from the supercharged 3.0-liter V6. Power is fed through an eight-speed automatic to all four wheels giving the small CUV impressive performance numbers. The 0-60 mile per hour time is expected to be in the low five second range to go with an electronically limited top speed of 155 miles per hour. The suspension has been upgraded as well to improve handling, but it also gives the SQ5 a sportier appearance with a ride height that has been lowered by more than an inch compared to a standard Q5.
Speaking of styling, the 2014 SQ5 gets all of the expected "S" model upgrades, especially when it comes to the new front fascia and grille, the standard 20-inch, triple-spoke wheels and the quadruple exhaust tips. Only two colors will be available on the SQ5: Panther Black and Estoril Blue. Inside, the SQ5 will get a sportier cabin with bright, "aluminum-look" pedals and shift paddles, and the materials will also get an upgrade to include Nappa leather and Alcantara as well as accent options that include carbon fiber, piano black, aluminum or wood finish.

Which will Dieselgate hurt more, Volkswagen or US diesels?

The most damning response to the news Volkswagen skirted emissions regulations for its diesel models may have actually come from the Los Angeles Times. On Saturday, the Times published an editorial titled "Did Volkswagen cheat?" The answer was undoubtedly yes. When you can't drive down Santa Monica Boulevard without seeing an average of one VW TDI per block, the following words are pretty striking: "... Americans should be outraged at the company's cynical and deliberate efforts to violate one of this country's most important environmental laws." VW has successfully cultivated a strong, environmentally conscious reputation for its TDI Clean Diesel technology, especially in states where emissions are strictly controlled. A statement like that is like blood all over the opinion section of the Sunday paper. The effect on VW's business, even Germany's financial health, was already felt Monday when the company's shares plummeted 23 percent in morning trading. The statement on Sunday from VW CEO Dr. Martin Winterkorn says "trust" three times. That probably wasn't enough in nine sentences. Writers over the weekend have compared VW's crisis to one at General Motors 30 years ago, when it was the largest seller of diesel-powered passenger cars until warranty claims over an inadequate design and ill-informed technicians effectively pulled the plug on the technology at GM. In a sense, VW is in the same boat as GM because it has fired a huge blow into its own reputation and that of diesels in passenger cars. And just as automakers like Jaguar Land Rover, BMW and, ironically, GM, were getting comfortable with it again in the US. VW of America was already knee-deep in its other problems this year. Its core Jetta and Passat models are aging and it needs to wait more than a year for competitive SUVs that American buyers want. The TDIs were the only continuous bright spot in the line and on the sales charts. Even as fuel prices fell and buyers shunned hybrids, VW managed to succeed with diesels and show that Americans actually care about and accept the technology again. Fervent TDI supporters might actually lobby for that maximum $18 billion fine to VW. I've personally convinced a number of people to look at a TDI instead of a hybrid. Perhaps not so much for stop-and-go traffic, but I know buyers who liked the idea that a TDI drove like a normal car and wasn't packed with batteries.