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2015 BMW X4

BMW has been in the line-blurring business of late, with the original X5 "Sports Activity Vehicle" muddling the line between SUVs and sport sedans in 1999, the 5 Series Gran Turismo challenging what our definition of "Gran Turismo" means in 2009, and pretty, low-roofed four-doors like the 6 Series Gran Coupe and the fresh new 4 Series Gran Coupe broadening the meaning of the word "coupe."
In the midst of all of this, BMW blurred the lines around both the SUV and coupe genres with its big, heavy, and in many ways ridiculous X5-based "Sports Activity Coupe" (cue collective eye-roll), dubbed X6. Auto wags scoffed at its lack of utility, compromised outward visibility and added cost, but a more emotional public was apparently smitten enough by its aggressive looks to avail itself of some 250,000 of them worldwide in six model years on sale.
Enter the all-new 2015 X4 crossover - err, "Sports Activity Coupe" - which BMW hopes will perform as well in the compact category as the X6 has on the next rung up the ladder. Like the X6, the X4 is a tough sell on paper: it's more expensive and less practical than the X3 on which it's based; it's heavier, despite the loss of interior space; and it doesn't even hold as much stuff in the back as the 3 Series wagon. As with the X6, the X4 is essentially a high-riding style statement that, like proper coupes (the two-door kind), says to the world, "You fools can take your need for practicality and shove it. I just want to look good."

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.

BMW, Toyota warn about Chinese market slowing down

BMW and Toyota are the latest automakers to become concerned about the closing throttle on the once rapidly accelerating vehicle market in China. There might be drastic effects on their ledgers at the end of the year. With the Chinese stock market no longer looking so healthy, the people just aren't buying as many new cars as in the past. Things got really bad in June after the first drop in deliveries in two years. BMW has already reduced Chinese production by 16,000 units so far this year. Despite the slowdown, the company has kept a brave face. "We experience that volatility in all emerging markets," BMW CEO Harald Krueger said in a conference call, according to Automotive News. The problem for Toyota is a bit stranger. Through July, the automaker's Chinese deliveries were actually up 12 percent. However, the gain was offset by falling sales prices. "This is making our business in China quite difficult. The business environment is getting tougher," Toyota Managing Officer Tetsuya Otake said, Automotive News reported. Much of the weakness in China has come in the middle part of the year, and from January through June deliveries were still up 8.4 percent. This means the effects haven't hit the financial results of some automakers too hard quite yet. In the second quarter, General Motors referenced the "challenging conditions" there but still posted a growing net income of $1.1 billion. Despite falling global sales, Toyota managed record income for the quarter, too.