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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.

Recharge Wrap-up: Portland's Electric Avenue, hacking a Tesla

Portland, Oregon has opened a city block set aside for electric vehicles. Dubbed "Electric Avenue," the EV-only zone replaces one that was taken over by new construction. The new Electric Avenue is an improvement, though, with four universal, 50-kW fast chargers and two Level 2 chargers. Currently, charging is free when customers pay for the metered parking. Portland's original Electric Avenue became a gathering place for EV drivers and an opportunity for companies to test charging technology. Read more at Ecomento. Hackers Kevin Mahaffey and Marc Rogers discussed hacking a Tesla Model S at the Def Con hacking conference. They outlined the car's vulnerabilities, particularly regarding the central information display, instrument cluster and the gateway. The hackers were able to exert control over certain subsystems, but they also pointed out some of the ways in which the car is protected from outside manipulation. Among other things, they were able to turn the car on and off, lock and unlock the doors, control the brakes under five mph, and shift the car into neutral above five mph. Tesla, who was also on hand for the presentation, has patched many of the vulnerabilities. Read more at Tom's Hardware. The BMW i3 is now available through DriveNow in Copenhagen, Denmark. After the carsharing program's success with the electric car in Germany, the UK and US, BMW (which owns DriveNow along with car rental company Sixt) has created a fleet of 400 i3 EVs in the Danish capital. With the help of bus operator Arriva, the BMW fleet is interconnected with public transportation. "Here in Copenhagen we are now already witnessing mobility of the future," says BMW's Dr. Bernhard Blattel. "It is on-demand technology, interconnected, quiet and electric." Read more in the press release below. Four hundred BMW i3 for interconnected mobility in Copenhagen. BMW i supports the improvement of life-quality in cities; Electric car sharing as the key component; DriveNow with the BMW i3 shortly also in Copenhagen, directly interconnected with public transport. Copenhagen. Following the successful introduction of the BMW i3 to the DriveNow fleets in Germany, the UK and the USA, the next major step is being taken with the commissioning of 400 BMW i3 in Copenhagen on September 3rd 2015. What is new here is an all-electric fleet which is also interconnected with public transport.

BMW reveals new X5 Security Plus in Moscow

A major player in the Russian market, BMW is heading to the Moscow Motor Show this month with a slew of local debuts... most of which we've already seen. But among all the new models making the trek from Bavaria to Moscow will be the new X5 Security Plus.
In a new-model launch that will surprise exactly no one, BMW's latest armored vehicle upgrades the X5 with enhanced protection for oligarchs against Chechen rebels, AK47-touting gangsters and missiles randomly falling on Crimean highways. Now meeting the VR6 standard of ballistic protection, the new X5 Security Plus incorporates reinforced bodywork, seats and joints, along with bulletproof glass.
Of course all that reinforcement (not to mention the jars of beluga caviar and bottles of Stoli in the glovebox) will come with a weight penalty, but the 4.4-liter twin-turbo V8 ought to do the trick, driving 450 horsepower through BMW's xDrive all-wheel-drive system to get the vehicle's occupants out of a war zone in a hurry.