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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.

A magical, disappearing ad for the hydrogen Audi A7 Sportback H-Tron

It's not quite Tupac appearing at Coachella with Snoop Dogg and Dr. Dre in hologram form, but it'll do for the gearhead set. Audi is looking to make a first impression for its A7 Sportback H-Tron hydrogen fuel-cell vehicle by making as little of an impression as possible. Like the car itself, Audi has, as it says in a video, "created ads that leave behind nothing but vaporized water." Pretty slick. Audi worked with German advertising agency Thjnk, on the campaign, which uses LED lighting and other bits of magic to first show an image of the sedan and then show it disappearing into a cloud of steam, according to Adweek. The publication posted Audi's 58-second video on the campaign (we've embedded a German version of the video for those looking to practice a bit of linguistics). The German automaker first revealed details about the A7 Sportback H-Tron late last year. The all-wheel-drive sedan can go as far as 31 miles on electricity alone. And the hydrogen fuel-cell drivetrain delivers almost 400 pound-feet of torque and a full (hydrogen) tank's range of 311 miles as well as a 0-62 mile per hour time of less than eight seconds and a top speed of 112 mph. Featured Gallery Audi A7 Sportback H-Tron Quattro View 83 Photos News Source: Adweek via Hybrid Cars Green Marketing/Advertising Audi Hydrogen Cars billboard adweek

2012 Seat Exeo is Audi with the old, in with the new-ish

We know what you're thinking: This car looks an awful lot like an Audi A4. But it isn't. And it is.
Regular readers may be aware that Audi's Spanish sister-company Seat inherited the previous-generation A4 some time after it was replaced. They put some new badges on it and presto! A new flagship model for Seat.
Called the Exeo, it has now undergone a minor facelift that did nothing if not make it look even more like an Audi, if that were possible, and we got up close and personal with the new model here in Frankfurt. Check it out in our high-res gallery of live images from the show floor.