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Don't hold your breath for an Audi RS8

There was a time not so long ago when Quattro GmbH produced essentially one model at a time. But that time is behind us. These days it's expanding into a full-fledged performance division to rival Mercedes-AMG and BMW's M department. Quattro GmbH is currently building the Audi RS4 Avant, RS5 coupe and cabrio, RS6 Avant, RS7, RS Q3 and the TT RS coupe and roadster - not to mention the R8. And while it's showing no signs of slowing down, but the latest intel from across the pond suggests we shouldn't count on an RS version of Audi's flagship sedan.
This according to Car and Driver, which spoke to Stephan Reil, the chief engineer at Quattro GmbH. Reil says Audi works on a teutonically rigid performance formula: an RS model has to have 20 to 25 percent more power than the existing S version. Considering that the existing S8 makes 512 horsepower and the RS7 a solid 553, we're not sure Audi really needs anything more powerful. But by Reil's calculations, the RS8 would need to pack between 630 and 655 hp, which would put it well ahead of rivals like the 550-hp Jaguar XJR, the 540-hp BMW Alpina B7, the 523-hp Maserati Quattroporte and even the new 577-hp Mercedes-Benz S63 AMG - and in league only with the even more powerful S65 AMG, which in its outgoing form produced 630 hp.
The question then comes down to whether there are enough customers lining up for the S65 that Audi would want to poach away from Mercedes. Or perhaps more pertinently, whether it might end up just taking customers from the new Bentley Flying Spur, which is already offering 616 horsepower in an even more prestigious, if less performance-focused package. Either way you look at it, Audi is apparently steering clear.

2016 Audi A3 Sportback E-Tron First Drive

While its parent company is still in the throes of an emissions scandal that has thrust the "green" credentials of automakers worldwide under the microscope, Audi is launching its first plug-in hybrid in the US. Audi is ready to double down on its electrified future, putting up its own reputation as collateral. This A3 Sportback E-Tron – a vehicle we've sampled in prototype form – is a tech-savvy plug-in car that could be the perfect vehicle to mark the brand's new commitment to an electric lifestyle. Straightaway, Audi USA President Scott Keogh addressed the TDI situation. He says he and the rest of the company are "shocked, followed by appalled, followed by anger, and now in the phase of drop-dead determination to make this thing right." Out of the 500,000 affected 2.0-liter TDI engines around the world, 14,000 are in Audis: about 3,000 A3 TDI sedans and about 11,000 A3 TDI Sportbacks. "It's quite simple. CARB and the EPA have told us these cars can stay on the road, they will stay on the road until we have a fix, and when we have a fix, we will absolutely fix these cars." The most important thing going forward, Keogh says, is regaining the trust of both the dealers and customers. Audi has been enjoying a bit of momentum in recent years, building a reputation for itself along the way. Audi came on the scene in the US in 1969, but it took until 2010 for the company to sell 100,000 units in a single year. Now, "In 2015, we're starting to look down the barrel of nearly doubling our sales in five years," says Keogh. The A3 achieves a 40-percent segment share, and for 75 percent of those buyers, it is their first purchase of a luxury brand. But as its own pace increases, the momentum of the industry as a whole has pulled Audi toward this foray into electromobility. Enter the A3 Sportback E-Tron. There's a little extra weight from the battery pack, but the suspension does a good job of keeping it unnoticeable while driving. The A3 E-Tron has several strengths working in its favor. First of all, as Keogh puts it, the hatchback is a "real, proper Audi – a real, proper, fully rounded driving machine." Qualifications such as "this is an electric car" don't matter. "People just want to buy a car," he says. It has the technology, build quality, and drivability of an Audi.

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.