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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.

2015 BMW 228i xDrive

Has BMW lost its edge? The answer to that depends on what vehicle you're discussing. The company's products, while still quick and agile, are softer and more forgiving than they've ever been. And while this change may be worrying if we're talking about an M3 or an M5, is it necessarily a bad thing for more mainstream models? That's our question after a week behind the wheel of the BMW 228i xDrive, a vehicle that succeeds the beloved, driver-focused BMW 1 Series. In some ways this new car is a let-down, but in many other areas the new 2 Series is just plain better. The latter is particularly true if we're talking about the new sheet metal. While the 1 Series was a great source of compact, rear-drive entertainment, it wasn't a pretty car. The new 2 still isn't a stunner, but it benefits from BMW's latest design language. It looks wider and more muscular than the squat 1 Series, although certain elements, like the daylight opening and rear taillights, look like they were plucked right from the old car. Overall, BMW has crafted a more premium aesthetic for the exterior of its entry-level coupe. A weak spot for the 1er, the 2 Series cabin sports a similarly upscale redo. Like the last-gen car, the top of the dash is home to a master display for the iDrive system (a neutered, non-navigation version on our test car), while the lower half of the center stack is dedicated to analog controls for the HVAC and audio. The dash layout is similar to the 1 Series, but the execution feels more upscale. The trim around the radio and climate controls includes aluminum and gloss accents. The passenger side dash and center console ditch soft-touch plastic for authentic materials – our car uses real brushed aluminum, although piano black and wood are also available. As with all recent BMWs, the combination of the automatic gear lever, the knob and buttons of the iDrive system, and the toggle switch for the Driving Dynamics Control system mean there's a lot of clutter where the driver's right hand falls. What hasn't changed with the 2 Series is the excellent relationship between the driver and the primary controls. Our test car wears the Sport Line package, which does without BMW's obnoxious, too-large-diameter M Sport steering wheel. Instead, there's a thick-rimmed wheel with textured leather and red contrast stitching. It feels more natural than the oversized M wheel, while this car's large paddle shifters have a solid, well-damped action.

Automakers want to stop the EPA's fuel economy rules change, and why that's a shortsighted move

With a Trump Administration looming, the EPA moved quickly after the election to propose finalizing future fuel economy rules last week. The auto industry doesn't like that (surprise), and has started making moves to stop the EPA. Ford CEO Mark Fields said he wanted to lobby Trump to lower the standards, and now the Auto Alliance, a manufacturer group, is saying it will join the fight against cleaner cars. The Alliance represents 12 automakers: BMW, Fiat Chrysler, Ford, GM, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Porsche, Toyota, VW, and Volvo. Gloria Bergquist, a spokesperson for the Alliance, told Automotive News that the "EPA's sudden and controversial move to propose auto regulations eight months early - even after Congress warned agencies about taking such steps while political appointees were packing their bags - calls out for congressional action to pause this rulemaking until a thoughtful policy review can occur." The EPA was going to consider public comments through April 2017, but then said it would move the deadline to the end of December. That means that it can finalize the rules before President Obama leaves office. The director of public affairs for the Consumer Federation of America, Jack Gillis, said on a conference call with reporters last week when the EPA originally announced its decision that it is unlikely that President Trump will be able to roll back these changes. Gillis also said on the same call that any attempt by the automakers to prevent these changes would be history repeating itself. "These are the same companies that fought airbags, and now promoting the fact that every car has multiple airbags," he said. "These are the same companies that fought the crash-test program, and now are promoting the crash-test ratings published by the government. So, it's clear that they're misperceiving the needs of the American consumer." There are more reasons the Allliance's pushback is flawed. Carol Lee Rawn, the transportation program director for Ceres, said on that call that the automotive industry is a global one, and many automakers are moving to global platforms to help them meet strict fuel economy rules around the world.