Birth of the company and its name Automobile company Wanderer was originally established in 1885, later becoming a branch of Audi AG. Another company, NSU, which also later merged into Audi, was founded during this time, and later supplied the chassis for
Gottlieb Daimler's four-wheeler. On 14 November 1899,
August Horch (1868–1951) established the company
A. Horch & Cie. in the
Ehrenfeld district of
Cologne. In 1902, he moved with his company to
Reichenbach im Vogtland. On 10 May 1904, he founded the
August Horch & Cie. Motorwagenwerke AG, a joint-stock company in
Zwickau (State of
Saxony). After troubles with the
Horch chief financial officer, August Horch left Motorwagenwerke and founded in Zwickau on 16 July 1909, his second company, the
August Horch Automobilwerke GmbH. His former partners sued him for trademark infringement. The German
Reichsgericht (Supreme Court) in
Leipzig eventually determined that the Horch brand belonged to his former company. Since August Horch was prohibited from using
horch as a trade name in his new car business, he called a meeting with close 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 the singular imperative form of
audire—'to listen'—in Latin. The idea was enthusiastically accepted by everyone attending the meeting. On 25 April 1910 the
Audi Automobilwerke GmbH Zwickau (from 1915 on
Audiwerke AG Zwickau) was entered in the company's register of Zwickau registration court. The first Audi automobile, the
Audi Type A 10/ Sport-Phaeton, was produced in the same year, followed by the successor
Type B 10/28PS in the same year. Audi started with a 2,612 cc
straight-four engine model Type A, followed by a 3,564 cc model, as well as 4,680 cc and 5,720 cc models. These cars were successful even in sporting events. The first
six-cylinder model Type M, 4,655 cc appeared in 1924. August Horch left the
Audiwerke 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. Left-hand drive spread and established dominance during the 1920s because it provided a better view of oncoming traffic, making overtaking safer In the same year, Rasmussen bought the remains of the U.S.
automobile manufacturer Rickenbacker, including the manufacturing equipment for 8-cylinder engines. These engines were used in
Audi Zwickau and
Audi Dresden models that were launched in 1929. At the same time, 6-cylinder and 4-cylinder (
the "four" with a
Peugeot engine) 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 AG,
Chemnitz. It was during this period that the company offered the
Audi Front that became the first European car to combine a six-cylinder engine with front-wheel drive. It used a power train shared with the Wanderer, but turned 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, referring to Audi's history as Auto Union and its present day, the four letters for A, U, D and I. However, this badge was used 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%. After the final few Audis were delivered in 1939 the "Audi" name disappeared completely from the new car market for more than two decades.
World War II Richard Bruhn, a
Nazi party member, was Auto Union's chairman of the board from 1932 to 1945 and then again after the war when the company was reestablished. In 2014 Audi became the last major German car company, after Volkswagen, BMW and Daimler, to commission a study of its wartime activities. The investigation found that the company worked with the
SS to build seven labor camps where more than 3,700 prisoners were put to work for Auto Union. In addition, 16,500 more people were forced to work at the company's factories in
Zwickau and
Chemnitz, and another 18,000 at an underground plant in Bavaria where 4,500 people died. A site was chosen in
Ingolstadt,
Bavaria, to start a spare parts operation in late 1945, which would eventually serve as the headquarters of the reformed Auto Union in 1949. The reformed company was launched 3 September 1949 and continued DKW's tradition of producing front-wheel drive vehicles with two-stroke engines.
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 Daimler-Benz'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. The decision to dispose of the Auto Union business was based on its lack of profitability. Ironically, by the time it sold the business, it also included a large new factory and near production-ready modern four-stroke engine, which would enable the Auto Union business, under a new owner, to embark on a period of profitable growth, now producing not Auto Unions or DKWs, but using the "Audi" name, resurrected in 1965 after a 25-year gap. In 1964, Volkswagen acquired a 50% holding in the business, which included the new factory in Ingolstadt, the DKW and Audi brands along with the rights to the new engine design which had been funded by Daimler-Benz, who in return retained the dormant Horch trademark and the Düsseldorf factory which became a Mercedes-Benz van assembly plant. Eighteen 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. 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 was fitted with a four-stroke engine and a
facelift for the car's front and rear. 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 after their horsepower ratings and sold as the Audi 60, 75, 80, and Super 90, selling until 1972. Initially, Volkswagen was hostile to the idea of Auto Union as a standalone entity producing its own models having acquired the company merely to boost its own production capacity through the Ingolstadt assembly plant—to the point where Volkswagen executives ordered that the Auto Union name and flags bearing the four rings were removed from the factory buildings. Then VW chief
Heinz Nordhoff explicitly forbade Auto Union from any further product development. Fearing that Volkswagen had no long-term ambition for the Audi brand, Auto Union engineers under the leadership of Ludwig Kraus developed the first
Audi 100 in secret, without Nordhoff's knowledge. When presented with a finished prototype, Nordhoff was so impressed he authorised the car for production, which when launched in 1968, went on to be a huge success. With this, the resurrection of the Audi brand was now complete, this being followed by the first generation
Audi 80 in 1972, which would in turn provide a template for VW's new front-wheel-drive water-cooled range which debuted from the mid-1970s onward.
assembly line in
Wolfsburg, 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 car well ahead of its time in technical details such as aerodynamics, light weight, and safety. However, teething problems with the rotary engines put an end to the independence of NSU. The Neckarsulm plant is now used to produce the larger Audi models
A6 and
A8. The Neckarsulm factory is also home of the "
quattro GmbH" (from November 2016 "
Audi Sport GmbH"), a subsidiary responsible for development and production of Audi high-performance models: the
R8 and the
RS model range.
Modern era The new merged company was incorporated on 1 January 1969 and was known as
Audi NSU Auto Union AG, with its headquarters at NSU's Neckarsulm plant, 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. That same year, the mid-sized car that NSU had been working on, the
K70, originally intended to slot between the rear-engined Prinz models and the futuristic
NSU Ro 80, was instead launched as a Volkswagen. After the launch of the
Audi 100 of 1968, the
Audi 80/Fox (which formed the basis for the 1973
Volkswagen Passat) followed in 1972 and the
Audi 50 (later rebadged as the
Volkswagen Polo) in 1974. The Audi 50 was a seminal design because it was the first incarnation of the
Golf/Polo concept, one that led to a hugely successful world car. Ultimately, the Audi 80 and 100 (progenitors of the
A4 and
A6, respectively) became the company's biggest sellers, whilst little investment was made in the fading NSU range; the
Prinz models were dropped in 1973 whilst the fatally flawed
NSU Ro80 went out of production in 1977, spelling the effective end of the NSU brand. Production of the Audi 100 had been steadily moved from Ingolstadt to Neckarsulm as the 1970s had progressed, and by the appearance of the second generation C2 version in 1976, all production was now at the former NSU plant. Neckarsulm from that point onward would produce Audi's higher-end models. The Audi image at this time was a conservative one, and so, a proposal from chassis engineer
Jörg Bensinger 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 Saloons, 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. In 1985, with the Auto Union and NSU brands effectively dead, the company's official name was now shortened to simply
Audi AG. At the same time the company's headquarters moved back to Ingolstadt and two new wholly owned subsidiaries;
Auto Union GmbH and
NSU GmbH, were formed to own and manage the historical trademarks and intellectual property of the original constituent companies (the exception being Horch, which had been retained by Daimler-Benz after the VW takeover), and to operate Audi's heritage operations. In 1986, as the Passat-based
Audi 80 was beginning to develop a kind of "grandfather's car" image, the
type 89 was introduced. This completely new development sold extremely well. However, its modern and dynamic exterior belied the low performance of its base engine, and its base package was quite spartan (even the passenger-side mirror was an option). In 1987, Audi put forward a new and very elegant
Audi 90, which had a much superior set of standard features. In the early 1990s, sales began to slump for the Audi 80 series, and some basic construction problems started to surface. Through the early 1990s, Audi began to shift its target market upscale to compete against German automakers
Mercedes-Benz and
BMW. This began with the release of the
Audi V8 in 1990. It was essentially a new engine fitted to the Audi 100/200, but with noticeable bodywork differences. Most obvious was the new grille that was now incorporated in the bonnet. By 1991, Audi had the four-cylinder Audi 80, the 5-cylinder
Audi 90 and
Audi 100, the turbocharged
Audi 200 and the Audi V8. There was also a
coupé version of the 80/90 with both four- and five-cylinder engines. Although the five-cylinder engine was a successful and robust powerplant, it was still a little too different for the target market. With the introduction of an all-new Audi 100 in 1992, Audi introduced a 2.8L
V6 engine. This engine was also fitted to a face-lifted Audi 80 (all 80 and 90 models were now badged 80 except for the USA), giving this model a choice of four-, five-, and six-cylinder engines, in
saloon,
coupé and
convertible body styles. The five-cylinder was soon dropped as a major engine choice; however, a
turbocharged version remained. The engine, initially fitted to the 200 quattro 20V of 1991, was a derivative of the engine fitted to the
Sport Quattro. It was fitted to the
Audi Coupé, named the
S2, and also to the Audi 100 body, and named the
S4. These two models were the beginning of the mass-produced
S series of performance cars.
Audi 5000 unintended acceleration allegations Sales in the United States fell after a series of recalls from 1982 to 1987 of
Audi 5000 models associated with reported incidents of
sudden unintended acceleration linked to six deaths and 700 accidents. A
60 Minutes report aired 23 November 1986, featuring interviews with six people who had sued Audi after reporting unintended acceleration, showing an Audi 5000 ostensibly suffering a problem when the brake pedal was pushed. Subsequent investigation revealed that
60 Minutes had engineered the failure—fitting a canister of compressed air on the passenger-side floor, linked via a hose to a hole drilled into the transmission. CBS did not acknowledge the test results of involved government agencies, but did acknowledge the similar results of another study. This summary is consistent with the conclusions of NHTSA's most technical analysis at the time: "Audi idle-stabilization systems were prone to defects which resulted in excessive idle speeds and brief unanticipated accelerations of up to 0.3g [which is similar in magnitude to an emergency stop in a subway car]. These accelerations could not be the sole cause of [(long-duration) sudden acceleration incidents (SAI)], but might have triggered some SAIs by startling the driver. The defective idle-stabilization system performed a type of
electronic throttle control. Significantly: multiple "intermittent malfunctions of the electronic control unit were observed and recorded ... and [were also observed and] reported by Transport Canada." Audi subsequently offered increased warranty protection As of late 2009, Audi's operating profit of €1.17 billion ($1.85 billion) made it the biggest contributor to parent Volkswagen Group's nine-month operating profit of €1.5 billion, while the other marques in Group such as Bentley and
SEAT had suffered considerable losses. May 2011 saw record sales for Audi of America with the new
Audi A7 and
Audi A3 TDI Clean Diesel. In May 2012, Audi reported a 10% increase in its sales—from 408 units to 480 in the last year alone. Audi manufactures vehicles in seven plants around the world, some of which are shared with other VW Group marques although many sub-assemblies such as engines and transmissions are manufactured within other Volkswagen Group plants. Audi's two principal assembly plants in Germany are: •
Ingolstadt, the former Auto Union site originally opened in 1945 and substantially rebuilt by Daimler-Benz in 1962, and acquired by Volkswagen in 1964 (Q2, A3, A6 e-tron, Q6 e-tron) •
Neckarsulm, the former NSU plant, acquired by Volkswagen in 1969. Home of
Audi Sport GmbH (A5, A6, A7, A8) - a satellite plant at nearby Böllinger Höfe produces the e-tron GT Audi also produces vehicles in Germany at: •
Zwickau, the birthplace of Audi. The former
Trabant factory, acquired by Volkswagen in 1990 to form
Volkswagen Sachsen (Q4 e-tron) Outside of Germany, Audi produces vehicles at: •
Anting, China. A joint venture with
SAIC •
Aurangabad, India.
Škoda Auto Volkswagen India factory •
Bratislava, Slovakia.
Volkswagen Slovakia factory (Q7 and Q8) •
Changchun, China. A joint venture with
FAW •
Foshan, China. A joint venture with
FAW •
Győr, Hungary (Q3) •
Martorell, Spain. A
SEAT factory (A1) •
Ningbo, China. A joint venture with
SAIC •
Qingdao, China. A joint venture with
FAW •
San José Chiapa, Mexico (Q5) •
São José dos Pinhais, Brazil •
Tianjin, China. A joint venture with
FAW In September 2012, Audi announced the construction of its first North American manufacturing plant in
Puebla, Mexico. This plant became operative in 2016 and produces the second generation Q5. From 2002 up to 2003, Audi headed the Audi Brand Group, a subdivision of the Volkswagen Group's Automotive Division consisting of Audi, Lamborghini and SEAT, which was focused on sporty values, with the marques' product vehicles and performance being under the higher responsibility of the Audi brand. In January 2014, Audi, along with the
Wireless Power Consortium, operated a booth which demonstrated a phone compartment using the
Qi open interface standard at the
Consumer Electronics Show (CES). In May, most of the Audi dealers in the UK falsely claimed that the Audi A7, A8, and R8 were Euro NCAP safety tested, all achieving five out of five stars. In fact none were tested. In 2015, Audi admitted that at least 2.1 million Audi cars had been involved in the
Volkswagen emissions testing scandal in which software installed in the cars manipulated emissions data to fool regulators and allow the cars to pollute at higher than government-mandated levels. The A1, A3, A4, A5, A6, TT, Q3 and Q5 models were implicated in the scandal. Audi promised to quickly find a technical solution and upgrade the cars so they can function within emissions regulations. Ulrich Hackenberg, the head of research and development at Audi, was suspended in relation to the scandal. Despite widespread media coverage about the scandal through the month of September, Audi reported that U.S. sales for the month had increased by 16.2%. Audi's parent company Volkswagen announced on 18 June 2018 that Audi chief executive Rupert Stadler had been arrested. In November 2015, the U.S. Environmental Protection Agency implicated the 3-liter diesel engine versions of the 2016 Audi A6 Quattro, A7 Quattro, A8, A8L and the Q5 as further models that had emissions regulation defeat-device software installed. Thus, these models emitted nitrogen oxide at up to nine times the legal limit when the car detected that it was not hooked up to emissions testing equipment. In November 2016, Audi expressed an intention to establish an assembly factory in
Pakistan, with the company's local partner acquiring land for a plant in
Korangi Creek Industrial Park in
Karachi. Approval of the plan would lead to an investment of $30 million in the new plant. Audi planned to cut 9,500 jobs in
Germany starting from 2020 till 2025 to fund electric vehicles and digital working. In February 2020, Volkswagen AG announced that it plans to take over all Audi shares it does not own (totalling 0.36%) via a squeeze-out according to German stock corporation law, thus making Audi a fully owned subsidiary of the Volkswagen Group. This change took effect from 16 November 2020, when Audi became a wholly owned subsidiary of the Volkswagen Group. In January 2021, Audi announced that it is planning to sell one million vehicles in China in 2023, comparing to 726,000 vehicles in 2020. In March 2026, the company announced its plan to put the Audi A2 e-tron on sale in 2026 as a small, electric car. The car will follow the shape of the original A2, which was produced from 1999 until 2005. == Leadership ==