Founded in Ingolstadt, Germany, on September 3, 1949, Auto Union GmbH emerged as a new entity, yet one deeply rooted in the rich history of German automobile manufacturing that stretched back to the 19th century. The narrative begins with August Horch, a pioneering figure who established A. Horch & Cie. in Cologne on November 14, 1899. By 1904, the burgeoning company transitioned into a joint stock corporation, relocating its headquarters to Zwickau, marking a significant step in its early growth.
However, internal disagreements led August Horch, the esteemed designer, to depart from his own creation in 1909. Undeterred, he established a new venture, August Horch Automobilwerke GmbH. Shortly after, in 1910, this new company was renamed Audi Automobilwerke GmbH. The Zwickau factory became the birthplace of the first Audi automobile in that same year. Throughout the Weimar Republic era, Audi expanded from a small enterprise into a brand recognized for its international quality and innovation.
The global economic downturn of the Great Depression presented considerable challenges. Horch and Audi, like many businesses, faced severe financial strain. This adversity became the catalyst for a significant merger. In 1932, these two companies, along with two other Saxony-based car manufacturers, united to form Auto Union AG, headquartered in Chemnitz. The iconic logo of four interlinked rings was adopted to symbolize this powerful union of distinct entities. The formation on June 29, 1932, brought together DKW producer Zschopauer Motorenwerke J. S. Rasmussen AG, Horchwerke AG, and Audi Werke AG. Completing this quartet was the automobile division of Wanderer-Werke AG, integrated into Auto Union through a sale and lease agreement.
By the 1930s, Auto Union had risen to become the second-largest German automaker, offering a diverse range of models that catered to almost every segment of the automotive market. DKW vehicles were strategically positioned in the lower mid-size category. Notably, in 1937, DKW achieved global prominence as the largest motorcycle manufacturer once again, boasting an annual production of nearly 60,000 units. This historical context is crucial for understanding the lineage of German automotive giants, including the later rise of Volkswagen, and how brands evolved and adapted through economic and industrial shifts. The early successes and strategic mergers of companies like Auto Union laid part of the groundwork for the robust German automotive industry we recognize today, an industry where brands like Audi and Volkswagen continue to play leading roles.
