The History of Audi: Horch, Auto Union and Vorsprung durch Technik

Audi at a glance

August Horch and the birth of the name (1899–1928)

August Horch founded his first car company, A. Horch & Cie., in Cologne on 14 November 1899, then moved it to Saxony: to Reichenbach in 1902 and to Zwickau in 1904. After a dispute with his board he left in 1909 and set up a new company in the same town. Because he could no longer use his own name, the son of a business partner suggested its Latin translation: "horch", meaning "listen", became "Audi".

The first Audi, the Type A 10/22 hp Sport-Phaeton, was delivered in 1910. Audi cars won the International Austrian Alpine Rally in 1912, 1913 and 1914. In 1921 the Type K became the first German production car with left-hand drive and a central gear lever, and in 1924 the Type M brought the brand's first six-cylinder engine. In August 1928 Jørgen Skafte Rasmussen, owner of the motorcycle and small-car maker DKW, bought the majority of Audi.

Auto Union and the four rings (1932–1945)

On 29 June 1932, encouraged by the State Bank of Saxony, which held most of the shares, Audi, DKW, Horch and Wanderer merged to form Auto Union AG, based in Chemnitz. Each ring of the new badge stood for one of the four brands, and Auto Union became Germany's second-largest vehicle maker. Within the group, Audi built mid-range cars such as the 1932 Audi Front, the first European car to combine a six-cylinder engine with front-wheel drive. DKW, with its small front-wheel-drive two-strokes, was by far the biggest seller. Compared with 1938, when DKW held 17.9 % of the German car market and Audi just 0.1 %, today's balance has reversed completely: Audi is the only one of the four brands still building cars.

Auto Union's mid-engined Grand Prix cars, the Silver Arrows, debuted at the Avus circuit in Berlin in May 1934. In October 1937 Bernd Rosemeyer reached more than 400 km/h on a public autobahn, and after his death in a record attempt in January 1938, Tazio Nuvolari became the team's leading driver. The group's last civilian cars were built in 1940–41. In wartime it produced military equipment and used forced labour, a period Audi has documented in its own historical research. In 1945 the occupying authorities expropriated the Saxon factories, and in 1948 Auto Union AG was deleted from the Chemnitz register.

A new start in Ingolstadt (1949–1969)

Former managers registered a central spare-parts depot in Ingolstadt in December 1945, and on 3 September 1949 Auto Union GmbH was formed there. It started with the DKW delivery van and motorcycles, and in August 1950 the first post-war passenger car, the DKW F 89, left its Düsseldorf plant. In April 1958 Daimler-Benz bought about 88 % of the company and took full ownership in 1959; a new Ingolstadt factory followed.

At the end of 1964 ownership passed to Volkswagen. In August 1965 the first four-stroke car, called simply "Audi", revived the name after a gap of about 25 years. The Audi 100 of November 1968 was developed by a team under Ludwig Kraus, at first without Volkswagen's approval, and became a commercial success. On 21 August 1969 Auto Union and NSU joined forces as Audi NSU Auto Union AG, with offices in Neckarsulm.

Vorsprung durch Technik: quattro, TDI and aluminium (1970–1999)

The company adopted the slogan "Vorsprung durch Technik" in January 1971. The Audi 80 followed in 1972 and the Audi 50 in 1974. In spring 1980 the turbocharged Audi quattro became the first high-volume car with permanent all-wheel drive. It transformed rallying: Audi won the world rally manufacturers' title in 1982 and 1984, with drivers' titles for Hannu Mikkola in 1983 and Stig Blomqvist in 1984.

On 1 January 1985 the company was renamed AUDI AG and moved its head office back to Ingolstadt. The 100 TDI of 1989 brought the brand's direct-injection turbodiesel, which made the technology widespread in passenger cars. In 1994 the A8 introduced the aluminium Audi Space Frame, and the A4 replaced the Audi 80. The Audi TT of 1998 became a design icon of the decade, and in 1998 Lamborghini joined the group under Audi's management, as told in the history of Lamborghini.

Le Mans, the R8 and the 2000s

The brand made its Le Mans debut in 1999 and won the 24-hour race 13 times between 2000 and 2014. The R8 sports prototype won three times in a row from 2000 to 2002, the R10 TDI of 2006 was the first diesel winner, and the R18 e-tron quattro of 2012 was the first hybrid to win. The road-going Audi R8 supercar of 2006 carried the racing name to the showroom. In 2012 Audi also bought the motorcycle maker Ducati.

Crisis and the electric era (2015–today)

In 2015 the company admitted that at least 2.1 million of its cars were involved in the Volkswagen diesel emissions scandal, and in June 2018 its chief executive was arrested. In December 2018 the company announced a 14 billion EUR investment programme in electric mobility and autonomous driving. Volkswagen took full ownership in November 2020 by buying out the remaining shareholders. Production of the Q4 e-tron began at Zwickau, close to where Audi was founded, in 2021.

Gernot Döllner became chief executive in 2023. In 2024 Audi earned revenue of 64.5 billion EUR but reported a net loss of 4.2 billion EUR. On the sporting side, Audi won the 2024 Dakar Rally with its electrified RS Q e-tron and entered Formula One in 2026 after taking over the Sauber team. Its current electric models are listed in the 1cars electric-car section, and the large Audi Q8 shows how the brand's SUV range has grown.

How Audi compares with BMW and Mercedes-Benz

Audi took its current form only in 1985, but its roots go back to 1899. Compared with BMW and Mercedes, it has built its image on technology rather than on rear-wheel-drive handling or traditional luxury: quattro all-wheel drive, aluminium bodies and diesel and hybrid racing success. Any two models of the three brands can be set side by side in the 1cars comparison tool.

Which Audi to choose today

This history explains today's line-up and helps with the choice. For drivers who face snow and wet roads, a model with quattro is the best choice, and the brand's long experience with all-wheel drive shows in how well the system works. The A4 and A6 estates (Avant) suit families who cover long distances, the Q5 and Q7 suit those who want more height and space, and the electric Q4 and Q6 e-tron are the natural choice for drivers who can charge at home.

On the used market, TDI diesels remain good value for high mileages, while TFSI petrol engines suit shorter trips. Before buying an older model, check the service history of the S tronic or tiptronic gearbox and the timing-chain condition on early TFSI engines. All models are listed in the Audi catalogue.

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