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Audi AG
Subsidiary (AG)
Industry Automotive
Predecessors
  • Auto Union/DKW GmbH
  • Slaby-Beringer
  • Wanderer
  • NSU Motorenwerke AG
Founded
  • 16 July 1909 in
    Zwickau (Audi)
  • 29 June 1932 in Chemnitz (Auto Union)
  • 3 September 1949 in Ingolstadt (re-establishment)
  • 10 March 1969 in Neckarsulm (Fusion)
Founder August Horch
Headquarters ,
Number of locations
13 production facilities in 10 countries
Area served
Worldwide
Key people
Markus Duesmann
(Chairman of the Board of Management & Board of Management Member for Technical Development and Product Lines)
Products Luxury vehicles
Production output
Decrease 1,802,073 units
Revenue Decrease €55.680 billion (2019)
Operating income
Increase €4.509 billion (2019)
Increase €3.943 billion (2019)
Total assets Increase €66.878 billion (2019)
Total equity Decrease €28.395 billion (2019)
Number of employees
90,783 (12/2019)
Parent Volkswagen Group
Divisions
  • Audi Germany
  • Audi Brussels
  • Audi Mexico
  • Audi Hungaria
  • Audi China
  • Audi do Brasil
  • Audi India
  • Audi Slovakia
  • Audi Spain
  • Audi Russia
Subsidiaries
Footnotes / references
Audi History: Chronicle, 2011 Annual Financial Report

Audi AG is a German automotive manufacturer of luxury vehicles headquartered in Ingolstadt, Bavaria, Germany. A subsidiary of the Volkswagen Group, Audi produces vehicles in nine production facilities worldwide.

The origins of the company are complex, dating back to the early 20th century and the initial enterprises (Horch and the Audiwerke) founded by engineer August Horch (1868–1951). Two other manufacturers (DKW and Wanderer) also contributed to the foundation of Auto Union in 1932. The modern Audi era began in the 1960s, when Auto Union was acquired by Volkswagen from Daimler-Benz. After relaunching the Audi brand with the 1965 introduction of the Audi F103 series, Volkswagen merged Auto Union with NSU Motorenwerke in 1969, thus creating the present-day form of the company.

The company name is based on the Latin translation of the surname of the founder, August Horch. Horch, meaning "listen", becomes audi in Latin. The four rings of the Audi logo each represent one of four car companies that banded together to create Audi's predecessor company, Auto Union. Audi's slogan is Vorsprung durch Technik, which is translated as "Progress through Technology". Audi, along with German brands BMW and Mercedes-Benz, is among the best-selling luxury automobile brands in the world.

Audi-Logo 2016
Audi-logo
Collage audi
Cars made by Audi

History

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 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.

Audi Typ E (1923)
1923 Audi Type E

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 10/22 hp (16 kW) 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 inline-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 when driving on the right.

The merger of the four companies under the logo of four rings

In August 1928, Jørgen Rasmussen, the owner of Dampf-Kraft-Wagen (DKW), acquired the majority of shares in Audiwerke AG. 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, representing these four brands. 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.

Post-World War II

1. Magdeburger Oldtimertag (5743586787)
IFA F9

Like most German manufacturing, at the onset of World War II the Auto Union plants were retooled for military production, and were a target for allied bombing during the war which left them 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. Following this, the company's entire assets were expropriated without compensation. On 17 August 1948, Auto Union AG of Chemnitz was deleted from the commercial register. 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 [de] or AWZ (in English: Automobile Works Zwickau).

With no prospect of continuing production in Soviet-controlled East Germany, Auto Union executives began the process of relocating what was left of the company to West Germany. 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 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. The Zwickau plant manufactured the infamous Trabant until 1991, when it came under Volkswagen control—effectively bringing it under the same umbrella as Audi since 1945.

New Auto Union unit

A new West German headquartered Auto Union was launched in Ingolstadt with loans from the Bavarian state government and Marshall Plan aid. The reformed company was launched 3 September 1949 and continued DKW's tradition of producing front-wheel drive vehicles with two-stroke engines. This included production of a small but sturdy 125 cc motorcycle and a DKW delivery van, the DKW F89 L at Ingolstadt. The Ingolstadt site was large, 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 an investor, when funds became available for construction of major car plant at the Ingolstadt head office site.

In 1958, in response to pressure from Friedrich Flick, then the company's largest single shareholder, 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 they 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.

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

Audi NSU Auto Union AG 1969
Participation certificate of the Audi NSU Auto Union AG, issued August 1969

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.

Audi Quattro 20V - 001
Audi Quattro

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.

In the early part of the 21st century, Audi set forth on a German racetrack to claim and maintain several world records, such as top speed endurance. This effort was in-line with the company's heritage from the 1930s racing era Silver Arrows.

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 220 PS (160 kW; 220 hp) 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. At the time, NHTSA was investigating 50 car models from 20 manufacturers for sudden surges of power.

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.

Audi 100 C3 (1988–1991) (10629216834)
Audi 100 C3, sold as the Audi 5000 in the U.S.

Audi contended, prior to findings by outside investigators, that the problems were caused by driver error, specifically pedal misapplication. Subsequently, the National Highway Traffic Safety Administration (NHTSA) concluded that the majority of unintended acceleration cases, including all the ones that prompted the 60 Minutes report, were caused by driver error such as confusion of pedals. CBS did not acknowledge the test results of involved government agencies, but did acknowledge the similar results of another study.

In a review study published in 2012, NHTSA summarized its past findings about the Audi unintended acceleration problems: "Once an unintended acceleration had begun, in the Audi 5000, due to a failure in the idle-stabilizer system (producing an initial acceleration of 0.3g), pedal misapplication resulting from panic, confusion, or unfamiliarity with the Audi 5000 contributed to the severity of the incident."

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."

With a series of recall campaigns, Audi made several modifications; the first adjusted the distance between the brake and accelerator pedal on automatic-transmission models. Later repairs, of 250,000 cars dating back to 1978, added a device requiring the driver to press the brake pedal before shifting out of park. A legacy of the Audi 5000 and other reported cases of sudden unintended acceleration are intricate gear stick patterns and brake interlock mechanisms to prevent inadvertent shifting into forward or reverse. It is unclear how the defects in the idle-stabilization system were addressed.

Audi's U.S. sales, which had reached 74,061 in 1985, dropped to 12,283 in 1991 and remained level for three years, – with resale values falling dramatically. Audi subsequently offered increased warranty protection and renamed the affected models – with the 5000 becoming the 100 and 200 in 1989 – and reached the same sales levels again only by model year 2000.

A 2010 BusinessWeek article – outlining possible parallels between Audi's experience and 2009–2010 Toyota vehicle recalls – noted a class-action lawsuit filed in 1987 by about 7,500 Audi 5000-model owners remains unsettled and remains contested in Chicago's Cook County after appeals at the Illinois state and U.S. federal levels.

Models

Current model range

The following tables list Audi production vehicles that are sold as of 2018:

S and RS models

Electric vehicles

Audi is planning an alliance with the Japanese electronics giant Sanyo to develop a pilot hybrid electric project for the Volkswagen Group. The alliance could result in Sanyo batteries and other electronic components being used in future models of the Volkswagen Group. Concept electric vehicles unveiled to date include the Audi A1 Sportback Concept, Audi A4 TDI Concept E, and the fully electric Audi e-tron Concept Supercar.

Self-driving cars

In December 2018, Audi announced to invest 14 billion Euro ($15.9 billion) in e-mobility, self-driving cars.

Production figures

A1 A2 A3 A4 A5 A6 A7 A8 Q3 Q5 Q7 TT R8
1998 143,974 271,152 174,867 15,355 13,682
1999 143,505 252,514 162,573 14,636 52,579
2000 32,164 136,141 231,869 180,715 12,894 56,776
2001 49,369 131,082 308,778 186,467 11,708 39,349
2002 37,578 125,538 360,267 178,773 10,942 34,711
2003 27,323 159,417 353,836 168,612 21,748 32,337
2004 19,745 181,274 345,231 195,529 22,429 23,605
2005 10,026 224,961 337,705 215,437 21,515 1,185 12,307
2006 231,752 341,110 487 229,021 22,468 72,169 23,675 164
2007 231,117 289,806 25,549 243,842 22,182 162 77,395 56,766 4,125
2008 222,164 378,885 57,650 214,074 20,140 20,324 59,008 41,789 5,656
2009 206,747 282,033 84,883 182,090 8,599 105,074 27,929 22,821 2,101
2010 51,937 198,974 306,291 111,270 211,256 8,496 22,435 154,604 48,937 26,217 3,485
2011 117,566 189,068 321,045 111,758 241,862 37,301 38,542 19,613 183,678 53,703 25,508 3,551
2012 123,111 164,666 329,759 103,357 284,888 28,950 35,932 106,918 209,799 54,558 21,880 2,241
  • Data from 1998 to 2010. Figures for different body types/versions of models have been merged to create overall figures for each model.

Images for kids

See also

Kids robot.svg In Spanish: Audi para niños

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