Auto Union AG, was an amalgamation of four German automobile manufacturers, founded in 1932 and established in 1936 in Chemnitz, Saxony. It is the immediate predecessor of Audi as it is known today.
As well as acting as an umbrella firm for its four constituent brands (Audi, Horch, DKW, Wanderer), Auto Union is widely known for its racing team (Auto Union Rennabteilung, based at Horch works in Zwickau/Saxony). The Silver Arrows of the two German teams (Mercedes-Benz and Auto Union) dominated not only GP car racing from 1934 onwards but set records that would take decades to beat, such as the fastest speed ever attained on a public road (at 432.7 km/h (268.9 mph), a record lasting until 2017. After being reduced to near ruin in the aftermath of World War II, Auto Union was re-founded in Ingolstadt, Bavaria, in 1949, ultimately evolving into the modern day Audi company following its takeover by Volkswagen in 1964 and later merger with NSU Motorenwerke in 1969.
The current corporate entity which bears the Auto Union name – Auto Union GmbH – was founded in 1985 and is a wholly owned subsidiary of Audi AG; its purpose is to act as owner of Auto Union's historical trademarks and intellectual property, as well as managing Audi's heritage operations. The company's distinctive logo, of four interlocking rings to represent the original four members of the Auto Union, survives as the logo of Audi.
Formation
Auto Union was formed in Germany in 1932 merging: Zschopauer Motorenwerke J. S. Rasmussen (brand DKW – steam-driven car) founded by Danish engineer Jørgen Skafte Rasmussen in 1916, it branched out into motorcycles, and then front-drive two-stroke cars built at Audi works in Zwickau since 1931. Horch – founded 1904 by August Horch in Zwickau. It built cars starting from straight-twin engines to luxury models with V8- and V12 engines. Audi – because of disputes with the CFO, August Horch in 1909 left his namesake enterprise and founded Audi across town, building inline-four-, six- and eight-cylinder-engined cars. In 1928 Audi became a subsidiary of Zschopauer Motorenwerke. Wanderer (car division only) – founded in 1911, with small four-cylinder cars and later a more luxurious straight-6 built in Siegmar (now Chemnitz)
In August 1928, Rasmussen, the owner of DKW, acquired a majority ownership of Audiwerke AG. In the same year, Rasmussen bought the remains of the US automobile manufacturer Rickenbacker, including the manufacturing equipment for eight- and six-cylinder engines. These engines were used in Audi Zwickau, Audi Imperator and Audi Dresden models. At the same time, six-cylinder and four-cylinder (licensed from Peugeot) models were manufactured.
In 1930 the Saxony Regional Bank, which had financed Rasmussen's business expansion in the 1920s, installed Richard Bruhn on the board of Audiwerke AG, and there followed a brutal pruning and rationalization of the various auto-businesses that Rasmussen had accumulated. The outcome was the founding in Summer 1932 of Auto Union AG with just four component businesses, being Zschopauer Motorenwerke with its brand DKW, Audi, Horch and the car producing piece of Wanderer, brought together under the umbrella of single shareholder company Auto Union. Although all four brands continued to sell cars under their own names and brands, the technological development became more centralized, with some Audi models employing engines by Horch or Wanderer.
The Auto Union racing cars
Background
Auto Union chairman, Klaus, Baron von Oertzen, wanted a showpiece project to announce the new brand. At the 1933 Berlin Motor Show, German Chancellor Adolf Hitler announced two new programs: The people's car: a project that became the KdF car A state-sponsored motor racing programme: to develop a "high speed German automotive industry," the foundation of which would be an annual sum of
At fellow director's Adolf Rosenberger insistence, von Oertzen met with Dr. Ferdinand Porsche, who had done work for him before, and developed his own P-Wagen project racing car based on the new formula.
