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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.

BMW planning smaller Z2 roadster

It's been a few years since we heard about the BMW Z2, a compact, two-seat convertible that would slot in below the aging Z4 (shown above). Now, though, the crew at Car and Driver are back with details on the oft-rumored roadster.
The big shock for enthusiasts on this one is C/D's report that the Z2 will spin its front wheels, rather than its rears. A front-drive roadster is strange enough, but a front-drive BMW roadster? It's apparently true, though, as the new model would share its platform with the front-drive Mini and 2 Series Active Tourer rather than with the racier 228i or M235i coupes.
According to C/D, the rumored Z2 could be powered by a range of three- and four-cylinder, turbocharged engines, although it's more likely to be a four-only affair. Power should range from 160 to 230 ponies, while an M variant could arrive with 300 horsepower (that's a whole lot of power for front-wheel drive...).

BMW 328d confirmed for New York debut

Late last year, some of BMW's future diesel plans for the US market were leaked, and we learned that a diesel-powered version of the 3 Series sedan (pictured above in 335i guise) would be coming in the first quarter of 2013. That report appears to be holding true, as BMW has just confirmed the debut of the oil-burning 328d sedan as part of the company's New York Auto Show plans.
The 328d will be powered by a turbocharged four-cylinder diesel engine good for 180 horsepower and 280 pound-feet of torque. The rear-wheel-drive sedan will hit 60 miles per hour in 7.2 seconds and fuel economy numbers could "well exceed" 40 miles per gallon. (Official EPA numbers will be released closer to the car's launch.)
Elsewhere on BMW's New York stand, the company will show off the 3 Series Gran Turismo that debuted at the Geneva Motor Show earlier this month, as well as the Concept Active Tourer that we first saw in Paris last fall. Scroll down for the official press blast.