2009 Audi R8 Coupe 2-door 4.2l on 2040-cars

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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 A0 in development based on VW Up!

Bigger, it seems, is no longer better. Volkswagen has made waves with its Up! city car, a plucky three-door that's been a bit of a hit since it burst onto the automotive scene, spawning a number of variants during its short life. And while our European friends have gotten a Cross Up!, a commercial version, an EV model, Seat- and Skoda-badged variants, and a rumored diesel-electric Twin-Up!, the small city car has been lacking in terms of its premium content.
That fact makes this rumor rather tantalizing - Audi might be working on its own version of the front-engined, front-drive city car, to be called the A0. The report comes from AutoExpress, which claims Audi CEO Rupert Stadler wants a premium Up! that features a distinctive interior and exterior treatment.
Changes could include a trapezoidal grille, in addition to premium exterior features like LED lighting and alloy wheels. The cabin would feature leather and likely a version of Audi's MMI infotainment system, while power would come from a 109-horsepower, 1.0-liter engine found in the Up! GT Concept.

2018 Audi RS3 Sedan to make US debut in 2017 [UPDATE]

UPDATE: We've heard back from Audi, and the statement was as expected. According to spokesman Mark Dahncke, there's "nothing we can share at this time." We really want the Audi RS3 to come to the US market, and based on a report from Car and Driver, it doesn't sound like we'll be stuck waiting that long. The report claims the new compact rocket sedan will debut next year as a model year 2018 vehicle. Beyond that date, C/D's report expands on some of the details we reported on in our RS3 Sedan report from February. It backs up the claim about a 2.5-liter, turbocharged five-cylinder, but instead of a 400-plus-horsepower engine, C/D's report says it'd be "close to" 400 hp. That power would come from a turbocharged, 2.5-liter five-banger that's distinct from the unit currently offered in the Euro-market RS3 Sportback and the last-generation TT RS (the new 2.5 would first debut in that car's replacement). The new powerplant would be paired with Audi's seven-speed S-Tronic. According to C/D, all this powertrain goodness will allow the new RS3 to hit 60 in four seconds flat and run up to 174 miles per hour. If correct, that means Audi's newest high performer will be a tenth of a second faster to 60 and have an extra seven mph on the high end than the most potent Mercedes-Benz CLA45 AMG. And while the two-door BMW M2 isn't necessarily a direct competitor – because coupe – it's worth pointing out that the RS3 will be 0.2 seconds faster to 60 and have an extra 19 mph to its top speed. While C/D's report cites a "highly reliable source" for its information, we've naturally reached out to Audi to confirm as much as possible. We'll update this post as soon as Audi's PR team gets back to us. The company basically gave the usual "No comment." Related Video: News Source: Car and Driver Rumormill Audi Luxury Performance Sedan