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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.

Audi and FAW to launch A6 E-Tron in China

Audi and its Chinese joint-venture partner FAW have announced that they'll be building a production version of the Audi A6 E-Tron Concept, shown at the 2012 Beijing Motor Show. Based on the China-only long-wheelbase A6, the plug-in-hybrid model is being targeted specifically at the People's Republic.
Audi is promising a 50-kilometer (31-mile) electric range for the fuel-sipping sedan, although there are precious few details beyond that. We do know, though, that this will be a Chinese-built vehicle, with assembly slated for the FAW-Volkswagen joint-venture factory in Changchun. We presume we'll find out more when the Beijing Motor Show kicks off a few weeks from today.
"We are the market leader in China's premium segment and will continue systematically with the application of efficiency technologies. Audi is thus supporting the Chinese government's targets for the reduction of fuel consumption," said Dr. Dietmar Voggenreiter, the president of Audi China.

Audi R8, Lamborghini Huracan could get twin-charged five-cylinder

Engine downsizing and forced induction are some of the biggest trends in automotive powertrains today because. They offer the chance to reduce emissions and boost fuel economy, while possibly maintaining power. The shift is already happening to performance cars with turbocharged four-cylinders finding their way into the Ford Mustang, Chevrolet Camaro, and future Porsches. Now, there are rumblings of a tiny chance for a similar change coming for the Lamborghini Huracan and Audi R8. Why the new powertrain? China. While the market there might have slowing growth, it's still a major country for auto sales. The annual taxes on cars there also happen to be based on engine displacement, and there's a 40 percent rate on those over 4.0-liters, according to Car and Driver. The obvious answer to this conundrum is to build a smaller displacement, forced induction engine for the R8 and Huracan. Car and Driver points to the new turbocharged and electrically supercharged, 2.5-liter inline five-cylinder from the recent Audi TT Clubsport Turbo concept as a possible solution. Audi's e-turbo technology runs off a 48-volt electrical system and lithium-ion battery to produce a total of 600 horsepower and 479 pound-feet of torque in the prototype. With this mill, horsepower would barely shrink compared to the R8 V10 Plus and Lambo, but it actually makes more peak torque than their 5.2-liter V10s. While this is all theoretically feasible, take the possibility with a big grain of salt for now. According to Car and Driver, Quattro GmbH's Stephan Reil says that there's no work currently underway to fit the twin-charged five-cylinder, "but it has been talked about." That means such a vehicle is likely years away, if ever. In the meantime, a diesel version of the e-turbo setup is on the way the in the SQ7. Related Video: