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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.

Toyota launches BMW-powered Verso in Europe

BMW makes some sweet-revving engines, but its own vehicles aren't the only ones running BMW engines. So do the latest from Rolls-Royce and Mini, of course, as well as a handful of Peugeots and Citroëns thanks to its joint engine program with PSA. Wiesmann uses BMW engines, as did the famous McLaren F1. And now we can add one more to the list.
That would be the Toyota Verso, a Corolla-based minivan which Toyota builds in Turkey and sells in Europe and a few other markets overseas. The Verso is also now officially the first beneficiary of the partnership between Toyota and BMW as the Japanese automaker has released the MPV with BMW's 1.6-liter turbodiesel four.
The 111-horsepower engine is coupled to a Toyota transmission and joins the Verso range as the fourth (and least powerful) engine in the lineup, alongside the 122hp 2.0 diesel and the gasoline options with 1.6 liters and 160 hp and 1.8 for 180. Future collaborations between the two automakers will include fuel-cell development, a new joint sportscar platform, lightweight bodywork research and a new generation of lithium-air batteries. See the press release below for further details.

BMW wants to expand DriveNow carsharing program to 25 new cities

Daimler's Car2go car-sharing service just announced that it will debut in Rome, its 26th global city. Now, BMW says it wants to expand its own carsharing program to, wait for it, 25 more cities. Coincidence? We think not. BMW is looking to bring its DriveNow carsharing program, with its Mini Coopers and 1 Series, to as many as 15 new cities in Europe as well as 10 in the US, Bloomberg News says, citing comments BMW executive Peter Schwarzenbauer made at the Geneva Motor Show last week. The service is now operational in Berlin, Hamburg, Cologne, Munich, Dusseldorf and San Francisco and serves about a quarter-million people. Of course, it's that last city, where DriveNow started operations in August 2012, that's been somewhat problematic. San Francisco has tough guidelines when it comes to where the cars can be parked, with so few public parking areas to choose from. DriveNow charges $39 for membership in San Francisco, then $12 for the first half hour of driving and 32 cents for each additional minute. DriveNow competes directly against Car2go, which charges around $25 to become a member and then 41 cents a minute to rent a Smart ForTwo.