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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 will spend less on future technology as it focuses on future technology

It seems the very thing meant to be saved by Audi curtailing spending could also take a hit as a result. A report from Reuters outlines a few ways Audi will cut costs in the wake of its parent company's diesel scandal. While focusing on EVs, autonomous driving, and new connected technology instead of its current vehicle portfolio, Audi is axing plans for a track to test self-driving cars as well as facilities meant to produce new concepts and batteries. Or, you know, exactly the kinds of things Audi is now focusing its efforts on. Some of this shouldn't come as a surprise. We already know about the death of the R8 E-Tron, a low-volume EV that wasn't going to make the brand much money and didn't pan out as a halo electric car quite like the company probably hoped. Then there's the new E-Tron crossover, which has been in the works for a while and will head a line of consumer-grade EVs from the brand – the kind that will make money as long as they sell in mass-market numbers, something Tesla has shown is possible. That project is surely safe, although perhaps it will now take longer for the EVs to gain autonomous abilities. This change in funding direction could mean that the planned autonomous track, dubbed IN-Campus as it was to be located in Audi's home of Ingolstadt, was going to be more for show than actual research, or that Audi thinks it can get the same outcomes in its existing facilities or new ones located elsewhere. (The company's work council is upset by the plan being put on hold, as it could mean more jobs leaving Germany.) There's also the very strong possibility that this provides a welcome opportunity for the company to cut some fat. Reuters notes that Audi spends more on R&D than rivals BMW and Mercedes-Benz, despite having the whole VW Group to leverage. While the diesel scandal was certainly not welcome, it may be forcing Audi and the other Group brands to take a closer look at balance sheets than they otherwise would have. The result of all of this could be a leaner company, assuming too much attention doesn't stray to low-volume EVs and away from what are still the core products. Related Video: News Source: ReutersImage Credit: Reuters Green Audi Technology Crossover Autonomous Vehicles Electric audi e-tron

Audi Q4 crossover starts production in 2019, Q8 in 2018

Audi's crossover line-up will be expanding in the next couple of years. The company announced production dates both for the already announced Q8 flagship, as well as its less-publicized Q4 compact. The Q8 will begin production next year at a plant in Slovakia that currently builds the Q7. The Q4 will start production in 2019 at a plant in Hungary that will also build the Q3. Audi has shown us concepts of the Q8 already, and we've seen prototypes undergoing testing. But Audi hasn't said much about the Q4 until now, and we haven't seen camouflaged examples running around yet. Audi says the Q4 will have a "coupe-style silhouette" and "be positioned between the Audi Q3 and Q5." Of course that second part you probably figured out based on the name. The description of its looks leads us to believe that this will be the production version of the Audi TT Offroad concept, pictured above, from a few years ago. However, don't expect the concept's 408-horsepower hybrid powertrain to be offered, at least not at the start. It's been a long time coming for this crossover. The TT Offroad was reportedly confirmed for production back in 2015. And last year, Audi secured the trademark for Q4 from Fiat Chrysler. With production starting in 2019, it will probably still be a while before we get a glimpse at the new SUV. Odds are, we'll see a concept early next year at the soonest, followed by the production model at the end of 2018. As for the Q8, we would expect to see the production model revealed at the end of this year, or possibly early next year. Related Video: