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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.

Zetsche's CEO tenure extended through 2016 at Daimler

There appear to be two takes on Daimler CEO Dieter Zetsche having his contract extended for three more years, to 2016. A report in The Detroit News quotes the chairman of Daimler's supervisory board, Manfred Bischoff, talking up the stability at the top, "With today's extensions of the contracts of Dieter Zetsche and Thomas Weber, we are maintaining the important continuity at the top executive level." Bischoff also stated that that Zetsche has a plan to "further enhance Daimler's overall performance."
Over at Reuters, though, the three-year extension was seen as a lack of complete confidence in Zetsche's plans, since his contract was supposedly meant to be extended by five years. A spokesman said the board decided to extend executive contracts by only three years if the person was 60 or would turn 60 during the contract, but that was news to observers. Zetsche wants to make Mercedes-Benz the top selling luxury manufacturer globally by 2020, but has fallen to third place behind Audi and BMW. It hasn't held the top spot 2005, and investors judged it valued at half that of BMW at the end of 2012 once Daimler's truck business was subtracted.
Analysts cites the fact that Daimler stock hasn't bested its rivals but twice in twelve years, and that the company revised its profit target downward last year by nearly one billion euros, warning of stagnant earnings this year and will miss its original margin target for 2013.

Mercedes-Benz GLA Concept crossover leaked ahead of Shanghai debut

With just a few days left before the start of the Shanghai Motor Show, images of the Mercedes-Benz GLA Concept compact crossover have emerged online. The little 'ute is based on the small A-Class hatchback, and though it shares an identical wheelbase, is larger in every other dimension.
Looking like a rough-and-tumble five-door hatchback on the tippy toes of its 20-inch wheels, the GLA is most certainly destined for production in a toned down form that will borrow many bits and pieces from other cars based on this platform like the aforementioned A-Class and the CLA-Class sedan. Carscoop reports that the production version of the GLA will be revealed at the Frankfurt Motor Show in September of this year, with sales to the public starting in 2014.
Since it's based on the A-Class, we expect that the production GLA-Class will be powered by your choice of Mercedes' 2.0-liter turbocharged inline four-cylinder engine and a diesel or two, and will offer transmissions that include the company's seven-speed DCT and perhaps a six-speed manual (at least in Europe). If the GLA follows the same path as the two cars before it, expect a GLA45 AMG producing over 300 horsepower, as well. As for what powers the GLA Concept, that just might remain a mystery until the vehicle is officially revealed in China.