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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.

Audi Sport Quattro Concept speaks softly, carries a 700-hp stick

As promised, Audi has unveiled its Sport Quattro Concept here at the Frankfurt Motor Show, which takes inspiration from the 2010 Paris Motor Show debut known simply as the Quattro Concept. Both cars clearly seek to draw upon the company's legendary 1980 Ur-Quattro and its closely related Sport Quattro short-wheelbase rally special, yet this concept car looks more production-minded than the 2010 starlet.
Despite its more conservative duds, this handsome and muscular coupe actually packs significantly more power than the 2010 Paris showcar. In fact, it musters 700 horsepower and 590 pound-feet of torque from its plug-in hybrid powertrain, versus the Quattro Concept's more historically appropriate 2.5-liter five-cylinder turbo with 408 hp and 354 lb-ft. We're not going to complain about a twin-turbo 4.0-liter V8 plus an electric motor, nor will we grouse about its 3.7-second 0-62 mph dash, 190-mph top speed or 2.5 liters of fuel per 100 kilometers on the Euro cycle (roughly 94 miles per gallon US).
Stubborn rumors abound that Audi will offer a limited-edition version of this four-place coupe for sale, but for now, the company isn't talking. If such a model is offered, it's expected to cost significantly more than the R8 supercar, which might be a tough sell considering that vehicle's similar performance and more voluptuous - if less practical - shape.

Audi SQ5 comes to America with 354-hp gasoline engine

When we first saw the Audi SQ5 TDI unveiled back in June, we could feel that pit in our stomach. Here sat a powerful, sporty, mean-looking crossover, and we just knew that Audi wasn't going to be bringing it to the US. And we were right. While we won't be getting the diesel version of this crossover with its 479 pound-feet of torque, we will instead be getting a gas-powered, supercharged V6 - the same powertrain as the S5 - and that's a mighty fine consolation prize if you ask us. The US version of the 2014 Audi SQ5 will debut next week at the Detroit Auto Show, and it will go on sale this fall.
Ditching the diesel engine, the US-bound SQ5 loses some torque but gains plenty of horsepower with Audi quoting power ratings of 354 horsepower and 346 lb-ft from the supercharged 3.0-liter V6. Power is fed through an eight-speed automatic to all four wheels giving the small CUV impressive performance numbers. The 0-60 mile per hour time is expected to be in the low five second range to go with an electronically limited top speed of 155 miles per hour. The suspension has been upgraded as well to improve handling, but it also gives the SQ5 a sportier appearance with a ride height that has been lowered by more than an inch compared to a standard Q5.
Speaking of styling, the 2014 SQ5 gets all of the expected "S" model upgrades, especially when it comes to the new front fascia and grille, the standard 20-inch, triple-spoke wheels and the quadruple exhaust tips. Only two colors will be available on the SQ5: Panther Black and Estoril Blue. Inside, the SQ5 will get a sportier cabin with bright, "aluminum-look" pedals and shift paddles, and the materials will also get an upgrade to include Nappa leather and Alcantara as well as accent options that include carbon fiber, piano black, aluminum or wood finish.