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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.

The cars of notorious dictators

It's good to be the king, at least until your people have had enough of you. Last week, we brought you famous presidential cars. This week, we're going to the opposite end of the political spectrum, looking at what history's mad men drove throughout their repressive and violent regimes. These dictators were absolutely powerful, and absolutely corrupt. More nightmares for their people than rulers, their iron-fisted control gave them the ability to satisfy any wild desire with nearly limitless funds. While they all splurged on luxury goods, cars were a particular passion of many dictators. Cars make a powerful statement to the public about wealth, status and control. It's how you are presented at ground level to your adoring masses or mortal enemies. A custom luxury car with plenty of armor plating reinforced the specialness and "otherness" of the ruler to friend and foe alike. Muammar Gaddafi, Libya, 1969 - 2011 Lybia's President for Life Muammar Gaddafi fancied himself not just a car enthusiast, but a car designer for the masses as well. He supposedly designed a car called the "Saroukh el-Jamahiriya" or Libyan Rocket. It had a 230-horsepower V6 and the nose and tail of a rocket. He was trying to produce a safer car. What makes it safe car? Tough to say. Not a lot was ever released it. Apparently the el-Jamahiriya did come with airbags and collapsible fenders in case of a collision. A spokesperson said "The invention of the safest car in the world is proof that the Libyan revolution is built on the happiness of man." We'll just have to take his word for it. When he wasn't designing his own cars, Gaddafi was ordering up custom rides, large and small. Besides a heavily armored BMW 7 Series and a Mercedes S-Class stretch limo, Gaddafi had this custom Fiat built at a cost of $260,000. The gold in the trim is real gold (of course) and comes with some touches that are pure Gaddafi. For instance, the Fiat badge was replaced with an outline of the continent of Africa, with Libya cut out in green. Rebels seized the Fiat and Gaddafi's other trappings of power after putting an end to Gaddafi's 42 years in control. Jean-Claude "Baby Doc" Duvalier, Haiti, 1971 - 1986 Jean-Claude "Baby Doc" Duvalier was the second-generation dictator of Hati from 1971 to 1986. He made life hell for his people for 15 long years, starting when his father died when he was just 19 years old. Imagine if Justin Beiber was given a tiny island nation to run.

Geely and Mercedes-Benz invest $780 million to make electric Smart cars

BEIJING/SHANGHAI — Zhejiang Geely and Mercedes-Benz on Wednesday said they would each invest $388.77 million (2.7 billion yuan) in a China-based venture to build "premium and intelligent electrified" vehicles under the Smart brand. The 50:50 venture has received regulatory approval and will be based in the Chinese coastal city of Ningbo, the Chinese and German automakers said in a statement. Like Mercedes-Benz, smart is a Daimler marque. The venture will have manufacturing capacity in China and sales operations in China and Germany, the automakers said. Geely will lead in engineering the cars while Mercedes-Benz will take charge of their overall look, they said. The partners will each have three executives on the board of directors, with Geely's Tong Xiangbei becoming the venture's global chief executive. Geely has expanded rapidly through mergers and acquisitions since buying Sweden's Volvo in 2010 from U.S. parent Ford. In 2018, it built a stake of almost 9.7% in Daimler and set up a ride-hailing venture in China with the Stuttgart-based carmaker. Its latest announcement comes just over a month after China's Great Wall and Germany's BMW formed a venture to build electric Mini-branded cars in China, the world's biggest market for electrified vehicles where demand for smaller EVs is on the rise. Related Video: