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BMW considering North American engine plant?

BMW may be set to expand its US operations with a new engine plant, Bloomberg reports. The Bavarian automaker already has its Spartanburg, SC factory which builds the company's X3, X5 and X6 crossovers. According to the story, Mexico is also under consideration for the BMW engine factory, with the report claiming a final decision will be made in 2014.
"Establishing local motor manufacturing abroad is more complex than assembling cars, but it's a logical step for them to eventually start making engines in markets where they're expanding vehicle production," Juergen Pieper, an analyst for Bankhaus Metzler tells Bloomberg. Building engines in the US or Mexico would save BMW from having to ship engines for some of its most popular models across the Atlantic.
BMW, for its part, hasn't said anything concrete. Spokesman Mathias Schmidt is quoted in the story saying, "As part of our long-term growth strategy, we're frequently looking at different countries for possible locations of future production facilities. No decisions have been made yet, though, for an additional plant."

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.

2016 BMW 330e Plug-In Hybrid First Drive

Piecing together the i8 eco sports car taught BMW some valuable lessons, some of which you'll see in the next generation or two of the company's electrified mainstream cars. You won't have to wait that long for BMW to deliver on the key lesson, which can be seen right here in the 330e: make hybrids fun to drive and don't make people compromise on what they like. The 330e neatly sidesteps the traditional character-blanching entry ticket you get with hybrids by delivering almost as much torque as the 340i and a sprint time to 62 miles per hour of 6.1 seconds. For most people eco-conscious enough (especially in a time of cheap gas) to bother with plug-in hybrids, that's going to be quick enough. And so is the 140-mph top speed. It won't quite manage the precision of a normal 3 Series because it's 353 pounds heavier, but it's not far away. This 330e is (theoretically) capable of delivering 25 miles of electric-car range or ridiculous amount of range as a gasoline-electric hybrid. It will post a 44-gram CO2 emissions figure and officially deliver 1.9 liters/100km on the NEDC test cycle in Europe, which translates to 124 miles per gallon equivalent in the US, though it's unclear what the EPA-certified number would actually be. While punching in a straight line is always good, and sipping fuel like it's being rationed is nice, the key part to the 330e is that still handles like a 3 Series should every time you arrive at that one fun corner. It won't quite manage the precision of a normal 3 Series because it's 353 pounds heavier, but it's not far off. BMW has buried the 7.6-kWh lithium-ion battery pack beneath the cargo floor, while the electric motor resides up front, so the weight distribution moves from 50:50 to 49:51, leaving it a touch heavier in the back. Effectively, it's a 3 Series with the 320i's 2.0-liter, four-cylinder gasoline powertrain, the standard eight-speed automatic transmission, and an electric motor sandwiched in between to create a hybrid. The electric motor adds 87 hp to the gas engine's 181 horsepower to offer 248 hp of total power (yes, we know they don't directly add up, but that's the total output). While it has 74 pound-feet of continuous torque, the electric motor can overboost to 184 lb-ft when it needs to. Add that to the gas engine's 214 lb-ft and the car has a maximum of 310 lb-ft – 22 lb-ft shy of the 340i, without pumping out as many emissions.