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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.

2015 BMW X4 slides in on the diagonal starting at $45,625 in the US

If BMW has shown us anything, it's a knack for creating niches and expanding its product portfolio. Go back to the early '90s and it had essentially four models: the 3 Series, 5 Series, 6 Series and 7 Series. End of list. Since then, the Bavarian automaker has not only taken on Mini and Rolls-Royce, but has expanded its own range of models exponentially. You can chalk a big part of that up to crossovers, and another sizable chunk to giving existing models a different roofline and calling it something new. What we have here is a prime example of both.
Previewed in concept form the better part of a year ago at the Shanghai Motor Show, the slantback version of the X3 (and the baby brother to the X6) is now here in full production guise. Mechanically it's essentially the same as the new X3 on which it's based, but amps up the "sport" at the expense of the "utility" part of the SUV equation.
BMW will undoubtedly offer a wide range of powertrain configurations in markets around the world, but back in the United States it'll be offered in two specs: the X4 xDrive28i, packing a 2.0-liter inline-four with 240 horsepower and a $45,625 sticker price (including destination), or the X4 xDrive35i with the 300hp 3.0-liter six and a $48,925 MSRP. Either way, you're getting an eight-speed automatic and all-wheel drive.

Submit your questions for Autoblog Podcast #334 LIVE!

We're set to record Autoblog Podcast #334 tonight, and you can drop us your questions and comments via our Q&A module below. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
Discussion Topics for Autoblog Podcast Episode #334
2014 Mercedes Benz S Class