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This insane Barris-like custom car is a backyard BMW Z3 build

This is the second car made by Englishman Paul Bacon and it's called the Cosmotron, fashioned over 18 months in his backyard shed. Underneath that Jetsons bubble canopy and swinging-sixties body are the bones of a 1998 BMW Z3 with a 2.8-liter inline-six. Bacon stripped the roadster down, then built it back up using fiberglass laid over polystyrene foam, and leather hand-stitched by his wife. Bacon said he remembers how we were told that 21st-century cars would look like the Cosmotron, and since they don't, he had to fix the error. The list of 20th-century add-ons, however, is impressive, like the six SU carburetors topped off with department-store salt and pepper shakers, and the rear grille decorated with shiny plastic tops from moisturizer bottles. After driving the Cosmotron for two years, Bacon sold it to get ready for his third project. You can hear Bacon and the new buyer tell their stories in the video above.

BMW readying competition pack for M5, M6

According to Car and Driver, citing a report in BMW Blog, BMW will be offering performance upgrades - likely called the Competition package - for its M5 and M6 models (including the convertible and Gran Coupe versions of the M6). Both cars will continue to be offered with the normal 560-horsepower, 4.4-liter twin-turbocharged V8 engines, but this new performance pack is expected to add an additional 15 hp to the mix.
No need to worry, however - the upgrades won't simply be limited to a small boost in power. These M5 and M6 models will reportedly get new wheels, black exhaust tips, a more direct steering ratio and reworked suspension geometry which will provide better overall handling. Top speed is said to remain governed at 190 miles per hour, but that these extra improvements will shave one-tenth of a second off the cars' 0-60 times.
No pricing information has been revealed as of this writing, though we imagine it'll likely come at a substantial cost over the current starting prices of the M5 and M6 ($90,200 and $108,350, respectively).

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.