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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.

Both BMW and Audi shutter vehicle subscription programs

Both BMW and Audi are either cancelling or pausing their respective vehicle subscription programs, Automotive News reports. This is yet another blow to what was once a growing and burgeoning group of automakers introducing pay-as-you-go vehicle subscription options in a number of cities across the U.S. Both Mercedes-Benz and Ford shut down their services last year, and Cadillac turned off the tap in 2018. BMW’s program — Access by BMW — was only ever offered in the Nashville area. A BMW spokesperson explained the companyÂ’s decision making to Automotive News. "Our intent with the pilot was to learn about the viability of the subscription model and gauge customer interest. We are in the process of developing the next iteration of the program,” he said. When that next iteration will arrive is still uncertain. Audi doesnÂ’t claim that a comeback is on the way. Instead, the companyÂ’s website simply says its services are ending on January 31 this year. Audi limited its subscription service to the Texas area throughout its whole campaign. CadillacÂ’s subscription service was promised a reboot a long time ago, and today is the first time weÂ’ve heard some rumbling. ANÂ’s report claims that Cadillac is testing a rebooted version of the service in a dealer pilot now. WeÂ’ve reached out to Cadillac to see if it can provide any further details. As of today, the official Book by Cadillac website says Cadillac “will be debuting a new program in early 2020.” ItÂ’s now early 2021, so Cadillac is officially a year late on its announcement. A number of OEM-run vehicle subscription services still exist (Porsche, Volvo, Lexus, Nissan), but instead of the market expanding, itÂ’s shrinking these days. Related video: Audi BMW Cadillac Car Buying Ownership Luxury

Volkswagen, Bosch reach diesel settlement worth $1.6 billion

Volkswagen Group of America and automotive parts maker Bosch reached a settlement in which the two companies will pay a combined $1.6 billion because of their roles in the automaker's diesel-emissions scandal. VW, Europe's largest automaker, will pay about $1.2 billion to either repair or buy back vehicles. Bosch said separately that it will pay more than $300 million to owners of diesel-powered Volkswagens, Audis, and Porsches. The settlement stems from emissions issues related to about 78,000 VW-made cars and SUVs with 3.0-liter V6 diesel engines that were sold in North America. VW will recall and repair about 58,000 vehicles made for the 2013-through-2016 model years. The company will also buy back, offer a trade-in credit, or terminate the leases for about 20,000 cars for the model years 2009 through 2012. The older impacted models are the Volkswagen Touareg and Audi Q7, while the newer ones are the Touareg and Q7 as well as Audi's A6, A7, A8, A8L, and Q5 models, and finally the Porsche Cayenne Diesel. Previous reports estimated the payout at closer to $1 billion. The US settlement follows one reached last year between VW and US regulators in regards to VW's 2.0-liter diesel engines. That settlement was estimated to cost VW about $15 billion and impacted owners of about 500,000 vehicles. VW has had a stop-sale on its diesel vehicles in the US since late 2015 after it was discovered that VW installed software in its diesels that allowed those vehicles to cheat emissions-testing systems. VW on Wednesday also reiterated that it would contribute $225 million towards environmental-remediation efforts in the US. Volkswagen of America CEO Hinrich J. Woebcken, in Wednesday's statement, said that "we will continue to work to earn back the trust of all our stakeholders and thank our customers and dealers for their continued patience as this process moves forward." Related Video: News Source: Volkswagen via Automotive News-sub.req.Image Credit: Shannon Stapleton / Reuters Government/Legal Green Audi Porsche Volkswagen AutoblogGreen Exclusive Emissions Diesel Vehicles vw diesel scandal scandal settlement