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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.

Aston wants to build DBX on its new platform, not Mercedes'

Aston Martin is proceeding with plans to launch the DBX as its first production crossover. It just can't say at this point what it will be based on. Speaking with Automotive News Europe, Aston's new CEO Andy Palmer indicated that basing the DBX on a Mercedes SUV platform would not be its first choice because they "clearly sit in a very different space to the one we want to go" with the DBX. Instead, the company's first choice would be to build the crossover atop the new platform it's developing for its sports cars. "It just depends how high off the ground it could go," said Palmer. "I don't exclude the possibility of using some [Mercedes] parts, but I would say very much the primary route is our platform." The prospect of building an Aston SUV on Mercedes architecture – namely that of the GL-Class – has been on the table for some time now. The Lagonda SUV concept it showcased at the Geneva show in 2009 was based on the GL, and the two automakers have been forging a tightening alliance in the years since. The British automaker's next-generation engine is to be built by Mercedes-AMG, and it is expected to source other components from the German automaker as well. For its part, Mercedes has been taking a sportier approach with its latest crossovers, as demonstrated by the GLE Coupe that debuted before the more conventional version and the Concept GLC Coupe that previewed the GLK's replacement in Shanghai last month. Aston Martin, on the other hand, is building a new sports car platform that will underpin its next generation of luxury GTs, replacing the long-serving VH architecture that has served for decades as the basis for its entire model line. Perhaps the most surprising of ANE's report, though, is that Aston seems to be proceeding with plans to build the DBX apparently without even knowing what platform it will use.

Automakers face reality of EVs' cost — to jobs, and their bottom line

Related: We obsessively covered the Frankfurt Motor Show — here's our complete coverage FRANKFURT, Germany — European car bosses gathering for the Frankfurt auto show are beginning to address the realities of mass vehicle electrification, and its consequences for jobs and profit, their minds focused by government pledges to outlaw the combustion engine. As the latest such announcement by China added momentum to a push for zero-emissions motoring, Daimler, Volkswagen and PSA Group gave details about their electric programs that could give policymakers some pause. Planned electric Mercedes models will initially be just half as profitable as conventional alternatives, Daimler warned — forcing the group to find savings by outsourcing more component manufacturing, which may in turn threaten German jobs. "In-house production is almost irrelevant to the consumer," Daimler boss Dieter Zetsche told reporters on the eve of the Frankfurt Motor Show, in the midst of a German election campaign in which automotive jobs have loomed large. The company set a target of saving 4 billion euros ($4.8 billion) by 2025 to help fund the cost of its electric cars. "Daimler is the first company to state explicitly how much electric vehicles are going to hurt margins," said Bernstein analyst Max Warburton. "It was brave to go first — but of course it won't be the last." Volkswagen, for its part, said it was seeking new global supplier contracts to source 50 billion euros ($60 billion) of electric car content including batteries, which are not yet manufactured competitively in Europe. "A company like Volkswagen must lead, not follow," Chief Executive Matthias Mueller told reporters. VW diesel emissions-cheating exposed by U.S. regulators in 2015 triggered global public outrage, dozens more investigations into test-rigging by the wider industry and a push by some lawmakers to ban diesel and eventually all engines. TIGHTENING NOOSE Tesla shares jumped nearly 6 percent on Monday after a Chinese minister said it was a question of when, not if, Beijing bans fossil-fuel cars, tightening the noose around the combustion engine. France and Britain have promised its outright abolition by 2040. But PSA, the maker of Peugeots and Citroens, said it was concerned about the risks if consumers were left behind in the rush, and a new generation of battery cars does not sell.