Audi

Birth of the company and its name

The company traces its origins back to 1909 and August Horch. The first Audi automobile, the Audi Type A 10 / 22 hp Sport-Phaeton, was produced in 1910 in Zwickau.

In 1909, Horch was forced out of the company he had founded.[3] He then started a new company in Zwickau and continued using the Horch brand. His former partners sued him for trademark infringement and the German Supreme Court (Reichsgericht in Berlin)finally determined that the Horch brand belonged to his former company.

August Horch was barred from using his own family name in his new car business, so he called a meeting with his best business friends, Paul and Franz Fikentscher from Zwickau. At the apartment of Franz Fikentscher they discussed how to come up with a new name for the company. During this meeting Franz's son was quietly studying Latin in a corner of the room. Several times he looked like he was on the verge of saying something but would just swallow his words and continue working, until he finally blurted out, "Father – audiatur et altera pars... wouldn't it be a good idea to call it audi instead of horch?" "Horch!" in German means "Hark!" or "hear", which is "Audi" in Latin. The idea was enthusiastically accepted by everyone attending the meeting.

Audi started with a 2,612 cc (2.6 litre) four cylinder model[clarification needed] followed by a 3564 cc (3.6 L) model, as well as 4680 cc (4.7 L) and 5720 cc (5.7L) models. These cars were successful even in sporting events. The first six cylinder model,[clarification needed] 4655 cc (4.7 L) appeared in 1924.

August Horch left the Audi company in 1920 for a high position at the ministry of transport, but he was still involved with Audi as a member of the board of trustees. In September 1921, Audi became the first German car manufacturer to present a production car, the Audi Type K, with left-handed drive.[7] Left-hand drive spread and established dominance during the 1920s because it provided a better view of oncoming traffic, making overtaking safer.

In August 1928 Jørgen Rasmussen, the owner of DKW, acquired the majority of shares in Audiwerke AG.[8] In the same year, Rasmussen bought the remains of the US automobile manufacturer Rickenbacker, including the manufacturing equipment for eight cylinder engines. These engines were used in Audi Zwickau and Audi Dresden models that were launched in 1929. At the same time, six cylinder and four cylinder (licensed from Peugeot) models were manufactured. Audi cars of that era were luxurious cars equipped with special bodywork.

In 1932, Audi merged with Horch, DKW and Wanderer, to form Auto Union. It was during this period that the company offered the Audi Front which was the first European car to combine a six cylinder engine with front-wheel drive, using a unit shared with Wanderer but turned through 180 degrees so that the drive shaft faced the front.

Before World War II, Auto Union used the four interlinked rings that make up the Audi badge today, representing these four brands. This badge was used, however, only on Auto Union racing cars in that period while the member companies used their own names and emblems. The technological development became more and more concentrated and some Audi models were propelled by Horch or Wanderer built engines.

Reflecting the economic pressures of the time, Auto Union concentrated increasingly on smaller cars through the 1930s, so that by 1938 the company's DKW brand accounted for 17.9% of the German car market while Audi held only 0.1%.
[edit] Post-World War II

Like most German manufacturing, at the onset of World War II the Auto Union plants were retooled for military production, and immediately [citation needed]were subjected to heavy bombing for the rest of the war, leaving them all severely damaged.

Overrun by the Soviet Army in 1945, on the orders of the Soviet Union military administration the factories were dismantled as part of war reparations.[9] Following this, the company’s entire assets were expropriated without compensation.[9] On 17 August 1948 Auto Union AG of Chemnitz was deleted from the commercial register.[9] These actions had the effect of liquidating Germany's Auto Union AG. The remains of the Audi plant of Zwickau became the VEB (for "People Owned Enterprise") Automobilwerk Zwickau, AWZ for short (which translates into English as Automobile Works Zwickau).[10]

The former Audi factory in Zwickau, restarted assembly of the pre-war-models in 1949. These DKW models were renamed to IFA F8 and IFA F9 and were similar to the West German versions. West and East German models were equipped with the traditional and renowned DKW two-stroke engines.
[edit] New Auto Union

A new West German headquartered Auto Union was launched in Ingolstadt, Bavaria with loans from the Bavarian state government and Marshall Plan aid.[11] The reformed company was launched 3 September 1949 and continued DKW's tradition of producing front-wheel drive vehicles with two-stroke engines.[11] This included production of a small but sturdy 125 cc motorcycle and a DKW delivery van, the DKW F 89 L at Ingolstadt. The Ingolstadt site was a large one, consisting of an extensive complex of formerly military buildings which was suitable for administration as well as vehicle warehousing and distribution, but at this stage there was at Ingolstadt no dedicated plant suitable for mass production of automobiles: for manufacturing the company's first post-war mass-market passenger car plant capacity in Düsseldorf was rented from Rheinmetall-Borsig. It was only ten years later, after the company had attracted a relatively cash rich investor that investment funds became available for constructing a major car plant at the Ingolstadt head office site.

In 1958 Daimler-Benz took an 87% holding in the Auto Union company, and this was increased to a 100% holding in 1959. However, small two-stroke cars were not the focus of the company's interests, and while the early 1960s saw major investment in new Mercedes models and in a state of the art factory for Auto Union's, the company's aging model range at this time did not benefit from the economic boom of the early 1960s to the same extent as competitor manufacturers such as Volkswagen and Opel. It appears that the decision to dispose of the Auto Union business was based on its lack of profitability.[12] Ironically, by the time they sold the business it also included a large new factory and near production-ready thoroughly modern four stroke engine, which would enable the Auto Union business, under a new owner and with the benefit of a rediscovered name, Audi, to become one of Germany's most successful auto-makers during the second half of the 1960s.

In 1964 Volkswagen Group acquired a 50% holding in the business, which included the new factory in Ingolstadt and the trademark rights of the Auto Union. 18 months later Volkswagen bought complete control of Ingolstadt, and by 1966 were using the spare capacity of the Ingolstadt plant to assemble an additional 60,000 Volkswagen Beetles per year.[13] Two-stroke engines became less popular during the 1960s as customers were more attracted to the smoother four-stroke engines. In September 1965, the DKW F102 got a four-stroke engine implanted and some front and rear styling changes. Volkswagen dumped the DKW brand because of its associations with two-stroke technology, and having classified the model internally as the F103, sold it simply as the "Audi." Later developments of the model were named for their horsepower ratings and sold as the Audi 60, 75, 80, and Super 90, selling until 1972.
Audi 80 assembly line in Wolfsburg as of 1973

In 1969, Auto Union merged with NSU, based in Neckarsulm, near Stuttgart. In the 1950s, NSU had been the world's largest manufacturer of motorcycles, but had moved on to produce small cars like the NSU Prinz, the TT and TTS versions of which are still popular as vintage race cars. NSU then focused on new rotary engines based on the ideas of Felix Wankel. In 1967, the new NSU Ro 80 was a space-age car, well ahead of its time in technical details such as aerodynamics, light weight, and safety but teething problems with the rotary engines put an end to the independence of NSU. Today the Neckarsulm plant is used to produce the larger Audi models A6 and A8. The Neckarsulm factory is also home of the quattro GmbH, this subsidiary is responsible for development and production of the Audi high performance cars: the R8 and the "RS" model range.

The mid-sized car that NSU had been working on, the K70, was intended to slot between the rear-engined Prinz models and the futuristic NSU Ro 80. However, Volkswagen took the K70 for its own range, spelling the end of NSU as a separate brand.
[edit] Modern era

The new merged company was known as Audi NSU Auto Union AG, and saw the emergence of Audi as a separate brand for the first time since the pre-war era. Volkswagen introduced the Audi brand to the United States for the 1970 model year.

The first new car of this regime was the Audi 100 of 1968. This was soon joined by the Audi 80/Fox (which formed the basis for the 1973 Volkswagen Passat) in 1972 and the Audi 50 (later rebadged as the Volkswagen Polo) in 1974. The Audi 50 was a seminal design in many ways, because it was the first incarnation of the Golf/Polo concept, one that led to a hugely successful world car.
Audi Quattro

The Audi image at this time was a conservative one, and so, a proposal from chassis engineer Jörg Bensinger[14] was accepted to develop the four-wheel drive technology in Volkswagen's Iltis military vehicle for an Audi performance car and rally racing car. The performance car, introduced in 1980, was named the "Audi Quattro", a turbocharged coupé which was also the first German large-scale production vehicle to feature permanent all-wheel drive through a centre differential. Commonly referred to as the "Ur-Quattro" (the "Ur-" prefix is a German augmentative used, in this case, to mean "original" and is also applied to the first generation of Audi's S4 and S6 sport sedans, as in "UrS4" and "UrS6"), few of these vehicles were produced (all hand-built by a single team), but the model was a great success in rallying. Prominent wins proved the viability of all-wheel drive racecars, and the Audi name became associated with advances in automotive technology.