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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.

Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

BMW 2 Series caught uncovered during shoot

Before we know it, the BMW 1 Series will be no more in the United States. Well, sort of. The current six-year-old coupe and convertible will be replaced by the fancy new 2 Series you see here, spotted completely uncovered during a photo shoot, with the 1 Series nomenclature being reserved for the hatchback and GT models that might not ever make it Stateside.
The roofline of the new 2 Series doesn't appear to have to changed all that much from the current 1 Series coupe, but the front and rear fascias have indeed been smoothed out. (Truth time: As much as your author adores the 1 Series, he's always found its rear end to be, well, weird.) It looks good, seen here in M235i guise, with large wheels, slimmer headlamps and large air intakes on either side of the front fascia.
The 2 Series is expected to come to the States, likely in M235i and 228i variants, though rumors suggest that we won't get a non-M 235i model. The M235i is expected to be powered by the N55 turbocharged inline-six that we currently enjoy in the 335i sedan, producing something like 320 horsepower. The 228i, unsurprisingly, should use the 2.0-liter turbo-four from the 328i, making around 240 hp. Both engines will almost certainly employ eight-speed automatic transmissions and six-speed manuals.