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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.

BMW considering building 3 Series in North America

There might be even more BMWs coming from North America soon. The company recently announced plans to build a flagship crossover called the X7 at its Spartanburg, SC, factory. Now, rumors are emerging that the Bavarians might be thinking about building a second North American factory that could build its quick-selling 3 Series.
According to Bloomberg, the German luxury giant is considering several possible locations for a North American factory, including two in Mexico, that may build the 3. "We will decide this in the next months. On the North American continent, there's still potential," said BMW production boss, Harald Krueger, in an interview meant for company staff obtained by Bloomberg.
If BMW decides to open a plant in Mexico, it would be following its rival Audi, which already announced construction of a factory there. Mercedes-Benz has been rumored to be working on a deal with Nissan to build its cars South of the Border as well. Rumors of Bimmer considering Mexican production have also cropped up in the past, so it wouldn't come as a total surprise to hear it made official.

2015 BMW 740Ld xDrive

When it first came stateside in 1978, choosing a BMW 7 Series was a simple process. With one engine and one wheelbase, you could just pick what color you want and be on your merry way. Today there are ten different models, forcing drivers to choose among four engines (plus a hybrid), rear- or all-wheel-drive, and two different wheelbase lengths. As if this isn't tricky enough, the options list has more custom choices than the Taco Bell app. Do you want standard paint and upholstery, or something from the pricey BMW Individual collection? What about the headlights: Do you want LEDs, or are the standard xenons just fine? Need a head-up display? Night vision? Adaptive dampers? The list goes on and on. After a week with a new version of BMW's flagship sedan, we've sorted out which model you actually want, although it's still up to you whether or not to order a ceramic-glazed iDrive knob. Our favorite 7 Series is now the 740Ld Xdrive, a conclusion we came to after a week at the helm of the smooth, torquey land yacht. Driving Notes When the diesel 7 first arrived at the 2014 Chicago Auto Show, its engine was already familiar to American consumers. It's the same 3.0-liter, turbodiesel inline-six found in everything from the E90 3 Series to the past two generations of X5, as well as the current 5 Series. A robust 413 pound-feet of torque lathered across the rev range, with peak twist available between 1,500 and 3,000 rpm, and the corresponding horsepower tops out at 255. 0͖60 happens in a sedate 6.1 seconds, and for those with autobahn dreams the top speed is a modest 130 mph. While those figures aren't terribly impressive, as is often the case with diesels, the real-world application of the engine's power is far more dramatic. Even small throttle inputs produce a smooth surge of acceleration, making the 740Ld feel a lot quicker than the performance metrics might indicate. Even with the current cheap price of gas, the superior fuel efficiency of a diesel engine is worth noting, especially as this model only costs $1500 more than a 740Li xDrive. The diesel tips the scales at nearly 4,700 pounds, yet it boasts a 31-mile-per-gallon highway rating. It's rated at 23 mpg in the city, while our real-world testing saw returns in the mid-to-high 20s. Simple anecdotes about acceleration and fuel economy figures only convey a small part of the 740Ld's goodness.