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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.

Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury

Audi highlights headlights on upcoming new R8

Audi is preparing to roll out an all-new R8... but it's not about to reveal the whole thing at once. So in the first in what promises to be a series of teasers, the German automaker is showing off the new supercar's headlights. (Or headlight, we should say, in the singular.) Not unlike the R8 LMX revealed in Paris, the second-generation Audi supercar will incorporate LED headlights with an optional laser high-beam module. Unfortunately since laser headlights are illegal in the United States, the option isn't likely to be offered here. That is, at least, until Audi succeeds in convincing federal regulators otherwise. Although the teaser image above, like the press release below, may shine the light (so to speak) principally on the headlights, the shrouded shape also gives us a (little) bit to chew on. Yes, it will be available in blue, but beyond that we can expect the new R8 to incorporate slightly more angular lines than the model it replaces, with a more pronounced trapezoidal grille up in an overall design similar to the new TT, only more so. But then we already knew that much and more from the undisguised image that leaked out a little over a week ago. Ingolstadt, 2015-02-16 Audi reveals laser headlights for the new R8 - New mid-engine sports car features high-tech headlights - Laser high-beam offers high light intensity and excellent range Audi is revealing the headlights of its new R8* as the first of a number of technology highlights of the top sports car. The R8 uses LED headlights which can be supplemented by a laser high beam lighting module as an option. The new R8 will set new standards among high-performance sports cars – including in its lighting technology. As an option, the latest car development by Audi can be equipped with a laser spot as the high-beam headlight. The special appeal of laser lighting is that it uses high-intensity laser diodes, which generate a lot of light energy from a very small component. Compared to LED high-beam headlights, laser high-beams attain nearly twice the lighting range. Each headlight contains one laser module that operates with four high-intensity laser diodes. This module bundles the four intense blue-light laser beams. Then a phosphor converter transforms the blue light into pure white light. An identifying characteristic of the laser headlights is their blue light signature. Standard equipment in the new R8 includes an LED headlight system.