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Audi to spend $17 billion to fight BMW

It's no secret that VW Group, parent company to not only Volkswagen but also Audi, Bugatti, Bentley, Lamborghini, Porsche and Ducati brands sold in the US, is determined to become the world's largest automaker. Even more impressive is that VW is prepared to spend billions to make it happen.
With that comes word that VW Group will be spending $17 billion on its Audi brand over the next three years to push itself above rival BMW. The money will be invested in both vehicle development (including lightweight auto design and alternative powertrains) and facilities (including expansion in Hungary, China and new operations in Mexico). The luxury brand is focused on global manufacturing infrastructure.
Already Europe's best-selling luxury brand, Audi's objective is to overtake BMW by the end of the decade by selling more than two million cars per year (BMW is shooting for 1.54 million sales in 2013). If those objectives are met, VW Group should be on track to be the industry's volume leader by 2018.

2013 BMW R1200GS and HP4 duel at Circuito de Almeria

The 2013 BMW HP4 is the track-ready version of the manufacturer's already mighty S1000RR, which puts the bike at the very tip top of the two-wheeled BMW food chain. The R1200GS, meanwhile, is intended to be a somewhat more utilitarian machine. Capable of conveying both rider and gear over vast distances and uncertain terrain, the big-boy GS is the Swiss army knife to the HP4's rapier. Or at least that's what we've always been led to believe. BMW recently rolled out some footage during a press launch that showed the R1200GS is actually no slouch when it comes time to sling around a road course.
The company threw both bikes on Spain's Circuito de Almeria for a little sparring match, and miraculously, the HP4 didn't just up and walk away from the R1200GS. From from it. Instead, the two stay tightly matched through most of the course before something surprising happens. We won't spoil the ending for you. Is it possible the rider on the HP4 still had some in reserve? Sure, but from the sound and look of things, neither bike was giving an inch. Check out all the video action below for yourself.

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.