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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 fires head of R&D, Wolfgang D"urheimer

According to Car and Driver, citing a report in Germany's Der Spiegel magazine, Audi has fired Wolfgang Dürheimer, the brand's head of research and development.
Dürheimer had originally signed on as Audi's R&D boss in September 2012. Prior to that, he had served as the head for both Bentley and Bugatti, and was formerly the development chief at Porsche (where he is credited with helping get the original Cayenne into production, a move that ushered a new era of profitability for the company). Dürheimer moved to Audi following a management shakeup within the Volkswagen Group in mid-2012.
During his time at Bentley, Dürheimer spearheaded the brand's efforts to launch an SUV. But at Audi, he reportedly quickly put a stop to costly projects such as the R8 E-Tron and the rotary range-extender engine for the A1 E-Tron. Furthermore, Car and Driver reports that Dürheimer shuffled the reporting structure within the brand's design department, and that VW Group CEO Martin Winterkorn had apparently disagreed with him several times on the styling direction for the brand.

Audi gets into tablet market with Android-powered Smart Display

Relatively small in newsworthiness compared with laser-equipped hybrids and all-new cockpit concepts, Audi has also announced a branded, Android-powered tablet called Smart Display at CES this week.
Audi has partnered with Google for its in-car computing software for years now, so it's hardly surprising to hear that its first foray into the world of tablets runs a Google OS (which one is still unclear), and has Android guts. Sorry, iPad users. The 10.2-inch tablet wears a lovely aluminum chassis that seems right in line with Audi's typical industrial design, and is packed with Nvidia's Tegra T40 processor.
Smart Display is meant to highlight the upcoming cleverness of Audi's newly announced in-car LTE connectivity (by way of continued partnership with AT&T). Users can, in theory, access the Google Play store while on the go, and then download and fiddle with Android-based apps until their very hearts are content. By "users" we mean "passengers" here, and so does Audi, though we're not exactly sure if there are measures in place to keep a driver from tableting while driving.