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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.

2014 Mercedes-Benz S-Class interior caught in spy shots

With the redesigned 2014 Mercedes-Benz S-Class getting closer to production, the camera-wielding crew over at Autospies somehow managed to get inside of the car to snap some detailed spy shots. As the prototypes continue to shed camouflage, it would appear that Mercedes-Benz is getting closer to unveiling the car, and with the Geneva and New York auto shows coming up, it could be sooner rather than later.
From what we can see of this car's interior, the overall look of the S-Class' cabin isn't a ground-breaking departure from the current car, but it has been completely redesigned with more advanced technology. The styling is now even more upscale with larger swaths of wood, more shapely door panels (without the built-in armrest cubbies) and the concept-like two-spoke steering wheel. The highlight of this car though is probably the two massive digital screens with one being used for driver information and the other used for navigation, audio and infotainment systems. One other detail we noticed about this car is that it was equipped with the new 360-degree camera that debuted on the new GL-Class and will also be used on the 2014 E-Class. We also know that the next-gen S-Class will be getting the new cloud-based MBrace2 infotainment system.
As for the exterior design, it looks like the next S-Class will carry a similar profile as the current car, but we can see through the camouflage that the new styling will fit in better with current Mercedes-Benz products. Up front, the grille is much larger is flanked by aggressive LED-trimmed headlights, while the rear view of the car shows us the LED brake light now at the top of the rear window, a more pointed trunk opening and a more squared-off rear fascia with exhaust outlets pushed to the corners.

Zetsche's CEO tenure extended through 2016 at Daimler

There appear to be two takes on Daimler CEO Dieter Zetsche having his contract extended for three more years, to 2016. A report in The Detroit News quotes the chairman of Daimler's supervisory board, Manfred Bischoff, talking up the stability at the top, "With today's extensions of the contracts of Dieter Zetsche and Thomas Weber, we are maintaining the important continuity at the top executive level." Bischoff also stated that that Zetsche has a plan to "further enhance Daimler's overall performance."
Over at Reuters, though, the three-year extension was seen as a lack of complete confidence in Zetsche's plans, since his contract was supposedly meant to be extended by five years. A spokesman said the board decided to extend executive contracts by only three years if the person was 60 or would turn 60 during the contract, but that was news to observers. Zetsche wants to make Mercedes-Benz the top selling luxury manufacturer globally by 2020, but has fallen to third place behind Audi and BMW. It hasn't held the top spot 2005, and investors judged it valued at half that of BMW at the end of 2012 once Daimler's truck business was subtracted.
Analysts cites the fact that Daimler stock hasn't bested its rivals but twice in twelve years, and that the company revised its profit target downward last year by nearly one billion euros, warning of stagnant earnings this year and will miss its original margin target for 2013.