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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.

2015 Italian Grand Prix is smoke, mirrors, stalls, and stewards

For the first day-and-a-half of the Italian Formula One Grand Prix weekend, everything went to blueprint: Mercedes in front, Ferrari lurking, everyone else scrambling in their usual orders behind. Then qualifying came, and someone stirred the pot. About the only thing we expected was for Lewis Hamilton to put his Mercedes-AMG Petronas on pole position, the 11th time he's done it this year. He did it with a brand-new specification engine, one that represents not only an evolution in components, but also in power unit philosophy. Kimi Raikkonen lines up in second. It's been a long time since we read those words; the Iceman hasn't been on the first row since the 2013 Chinese Grand Prix, when he put his Lotus second on the grid behind... Lewis Hamilton. Raikkonen lined up just ahead of a Ferrari at that China race, then driven by Fernando Alonso. In Italy this weekend, he lined up in front of the Ferrari driven by his teammate, Sebastian Vettel, who qualified third. Both Ferraris benefitted from an upgraded power unit, ending a front-row drought for the scuderia that goes all the way back to Monaco in 2009 Germany in 2012. Nico Rosberg has a lot of work to do from fourth in the second Mercedes-AMG Petronas. Mercedes discovered a problem with Rosberg's engine but couldn't figure out the cause, so he reverted to the previous-spec engine he used in Belgium, one that's six races old. The lack of power hurt. Williams teammates Felipe Massa and Valtteri Bottas took fifth and sixth, with Massa seemingly given a team-ordered helping hand. Williams told Bottas to tow Massa down the front straight, giving Massa a blistering time in the first sector. Then Bottas did it again, ensuring he would line up behind Massa. The first Sahara Force India of Sergio Perez nabbed seventh, three places ahead of teammate Nico Hulkenberg in tenth, with Romain Grosjean in the Lotus behind Perez in eighth. Marcus Ericsson in the Sauber qualified ninth, but some clumsy driving saw him impede Hulkenberg twice. The stewards penalized Ericsson with a three-place grid penalty and two points on his superlicense, so Hulkenberg inherited ninth and Pastor Maldonado in the second Lotus inherited tenth. We hardly saw Hamilton during the race, because he led from the start, worked up a larger gap to second place on every lap, and didn't give up the lead for the whole event.

Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.