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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 teases new 7 Series with gesture control tech, LCD display key

Want an early glimpse at what features you can expect to see in your next car a few years down the line? Look to flagship luxury sedans, where automakers often roll out their most advanced technologies. Like on the next-generation BMW 7 Series. Previewed in this teaser clip above, detailed in the press release below and pictured in the massive gallery at bottom, Munich's upcoming flagship model will be packed with innovative features. It'll have a remote-control parking feature that won't even require the driver to be on board when entering or exiting a parking space, controlled through an LCD touchscreen on the key fob. Once on board, you'll also be able to control the infotainment system with three-dimensional gestures made in the air or through the touchscreen display. Power will be provided by a new generation of engines, starting with a turbocharged inline-six mated to an eight-speed automatic transmission. An adaptive air suspension promises to offer a sporty or cushioning ride as desired. And it's all being built around a structure made partially out of carbon fiber, cutting nearly 290 pounds off the curb weight. All of which paints a picture of the next-generation 7 Series as a rolling technology exhibit, and one we're looking forward to experiencing first-hand. Technology and innovation workshop on the new BMW 7 Series model range. PreDrive Miramas. 17.04.2015 BMW is using a technology and innovation workshop to present an initial selection of development highlights which the next generation of the BMW 7 Series model range will use to set new benchmarks in lightweight design, driving dynamics, comfort, intelligent connectivity and operation. The extensive use of carbon-fibre-reinforced plastic (CFRP) in the structure of the passenger cell, the rigorous and detailed application of lightweight design and a new generation of engines combine to reduce the weight of the luxury sedan along with its fuel consumption and emissions figures. The comfort, safety and driving experience offered by the new BMW 7 Series benefit from new chassis technology, exceptional scope for interaction with the car's infotainment technology and a wider selection of driver assistance systems from BMW ConnectedDrive. BMW EfficientLightweight: Carbon Core helps to reduce weight by up to 130 kilograms. Thanks to the BMW EfficientLightweight strategy, the new BMW 7 Series line-up will tip the scales up to 130 kilograms lighter than the outgoing generation of models.

Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.