Last week we published a report, which revealed that BMW execs weren’t very concerned about Audi as a potential threat in the luxury market because it doesn’t build any RWD models and it has to discount its cars to lift sales numbers.

It hasn’t taken long for Audi to strike back with its own claims that it is one of the fastest-growing premium brands and that BMW has already been discounting its volume selling 3-series. Speaking at a press event last week, GoAuto reports that Audi’s Australian managing director Joerg Hofmann acknowledged that different manufacturers were reacting differently to Audi’s increased competition, with some reacting less intelligently than others.

“We are never arrogant. That is the difference between Audi and some other brands,” Hofmann explained, an obvious reference to BMW. As for the comments that premium cars must be RWD, Hofmann commented that “a premium product has nothing to do with the drivetrain.” Instead he explained that innovation was more important to luxury car buyers and that Audi has a history of creating innovative products such as quattro AWD, aluminum spaceframe construction and direct-injection FSI technology.