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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.

BMW details cheaper, sub-M performance cars for young 'brand ambassadors'

BMW's M cars are undoubtedly some of the best sport sedans in the world. Unfortunately, their prices put them out of the reach of a huge segment of buyers, many of them young. However, that might change in the near future as BMW launches its M Performance Automobiles performance sub-brand, positioned between its standard cars and the full M models.
Traditionally, M car buyers have been male and in their early-40s, according to Oliver Ganser, product strategy manager for BMW North America, speaking to Automotive News. However with MPA, BMW hopes to find even younger buyers "who will be brand ambassadors and appeal to the real enthusiasts that we have," he said. These new MPA models will see a mild boost in power and handling from off-the-shelf parts, instead of the unique engines and cutting-edge tech from their bigger M brothers.
The M Performance Automobiles line was launched last March at the Geneva Motor Show with high-performance diesel models of the 5 Series, X5 and X6. The first of the MPA models coming Stateside, the M235i, launches in March. We liked it when we drove it in January, but the $44,000 base price is still a bit steep. If it proves to be a success, we will see more of them, and if not, then it'll go down as another failed experiment, like the 318ti hatchback.

BMW X3 spied with nip and tuck nearly complete

With the style-driven BMW X4 coming along in development, it looks like some of the forthcoming crossover's design could trickle over to its utilitarian sibling, the X3. Captured in these spy shots, it appears that the 2015 BMW X3 is preparing for a minor facelift, and from what we can tell, the biggest change will center on the CUV's headlights.
There is plenty of camouflage on the front and rear fascias to suggest updates will occur there, too, but we can definitely tell that the X3 will be getting LED-equipped headlights - at least as an option, anyway. The halos are slightly different from the current offering and there is also an LED strip above the headlights used as turn signal indicators. Another interesting thing we notice in these pictures is the nub at the bottom of the grille (also visible in recent X4 spy shots). While this could be some sort of test sensor for this prototype, it could also be a front-mounted camera for a possible parking assist system.
We don't expect any changes to the powertrain and we're not sure what updates could be in store for the interior, but we're guessing that that the 2015 X3 will debut shortly after the X4 goes on sale next year.