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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.

Mercedes unveils GLC350e 4Matic PHEV

Mercedes-Benz intends to introduce at least 10 plug-in hybrid models to the market by 2017, and the the Mercedes GLC350e 4Matic is the latest one to show its electrified face. It's also the second crossover from the company to offer a PHEV version following the GLE550e 4Matic. Mercedes isn't releasing all of the details about the plug-in GLC yet, but it combines an internal combustion engine making 208 horsepower and a 114 hp electric motor with a seven-speed gearbox. Total torque is 413 pound-feet. The combo is enough to get the all-wheel drive crossover to 62 miles per hour in a purported 5.9 seconds and a claimed top speed of 146 mph. Fuel economy in the European cycle is estimated at the equivalent of about 90 miles per gallon, and there's a 21-mile pure electric range for zero-emissions cruising. Based around the newly introduced GLC-Class, buyers can still order a plethora of luxurious amenities, but the plug-in powertrain also comes with a few tweaks to help drivers maximize fuel economy. There's a haptic accelerator with a resistance point to indicate the switch between electric and combustion power. In addition, the hybrid system can anticipate the road ahead through radar and GPS to manage things as efficiently as possible. One of the GLC hybrid's biggest advantages when it arrives is the small field of competitors. Neither BMW nor Audi currently have a compact luxury crossover of this size with a hybrid option in the US. That really only leaves the Mercedes to take on the Lexus NX300h with total system output of 194 hp, and that's not even a plug-in. The GLC350e 4Matic isn't part of the new model's initial launch lineup in the US. It should be coming along later, though. Key topic: Energy efficiency - Economy on four wheels A revised all-wheel-drive powertrain, the outstanding aerodynamics and the intelligent lightweight design are the primary reasons for the high energy efficiency of all the new GLC models. The conventional diesel and petrol models boast significant reductions of up to 19 percent in both fuel consumption and CO2 emissions in comparison to the previous generation, while at the same time improving performance. GLC 220 d 4MATIC GLC 250 d 4MATIC GLC 250 4MATIC Output, kW/hp 125/170 150/204 155/211 Torque, Nm 400 500 350 Fuel consumption (l/100 km) 5.0 - 5.5 (6.1 - 6.5) 5.0 - 5.5 (6.1 - 6.6) 6.5 - 7.1 (7.5 - 7.9) ? Consumption % -19 -19 -12 CO2 g/km 129 - 143 (159 - 169) 129 - 143 (159 - 169) 152 - 166 (173 - 180) ?

AMG-powered Aston Martins still years away

After flirting for several years, Mercedes-Benz and Aston Martin have finally tied the knot. Just don't expect to see any offspring to result from the union for at least three or four years.
This according to Auto Express, which spoke with Daimler chief Dr. Dieter Zetsche at the Frankfurt Motor Show last week. AE reports that a new range of AMG-developed turbocharged V8s, transmissions and electrical components will make their way into the successors to the current V8 Vantage and DB9, but that these models are still a few years off.
Purists might balk at the thought of a Mercedes-powered Aston holding true to the brand's heritage. But while David Brown (for whom the DB range is named) may have steered clear of shoehorning in Detroit muscle into his cars, the entirety of the company's current range is powered by engines borrowing technology from Ford, and that arrangement seems to have worked well for Aston until now. And if you're still skeptical, look no further than Pagani and its AMG-sourced engines and you should have all the proof you need that the new relationship between Daimler and Aston could be a success.