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==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.<ref>{{cite web|url=http://gearheads.org/the-history-of-audi-auto-group/|title=The History of Audi Auto Group|last=Nazario|first=Uriah|website=GearHeads|access-date=20 March 2015|date=18 May 2012|archive-date=19 March 2015|archive-url=https://web.archive.org/web/20150319071651/http://gearheads.org/the-history-of-audi-auto-group/ }}</ref> On 14 November 1899, [[August Horch]] (1868–1951) established the company '''A. Horch & Cie.''' in the [[Ehrenfeld, Cologne|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]],<ref>Audi AG motion picture 1994: "The Silver Arrows from Zwickau", running time approx. 49 mins.</ref> eventually determined that the Horch brand belonged to his former company.<ref name="chronicle2">[http://www.audiusa.com/us/brand/en/about/main/history.html Audi History] {{webarchive |url=https://web.archive.org/web/20100209000116/http://www.audiusa.com/us/brand/en/about/main/history.html |date=9 February 2010 }} audiusa.com</ref> [[File:Audi Typ E (1923).jpg|thumb|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 – ''[[Audi alteram partem|audiatur et altera pars]]''... wouldn't it be a good idea to call it ''audi'' instead of ''horch''?".<ref>August Horch: "Ich baute Autos – Vom Schmiedelehrling zum Autoindustriellen", Schützen-Verlag Berlin 1937</ref> ''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.<ref>{{cite book | title = A History of Progress – Chronicle of the Audi AG | publisher=Audi AG, Public Relations | year = 1996 | page = 30 | url = http://www.bentleypublishers.com/product.htm?code=gahp | isbn = 978-0-8376-0384-1}}</ref> 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/{{convert|22|hp|kW|0|abbr=on}} Sport-Phaeton, was produced in the same year,<ref name="chronicle1">{{cite web|title=Brand family tree|url=http://www.audiusa.com/us/brand/en/about/main/history/brand_family_tree/brand_family_tree.html|publisher=Audi USA |access-date=15 August 2010|archive-url=https://web.archive.org/web/20100825165725/http://www.audiusa.com/us/brand/en/about/main/history/brand_family_tree/brand_family_tree.html|archive-date=25 August 2010 }}</ref> followed by the successor [[Audi Type B|Type B]] 10/28PS in the same year.<ref>{{cite book|last1=Baldwin|first1=Nick|title=The World guide to automobile manufacturers|year=1987|publisher=Facts on File Publications|isbn=978-0-8160-1844-4|first2=Brian|last2=Laban|page=43}}</ref> 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 [[Straight-six engine|six-cylinder]] model Type M, 4,655 cc appeared in 1924.<ref name="History of Audi">{{cite book|last=History|first=Audi|title=The Audi Story|year=2010|publisher=Audi AG |url=http://www.audi-journals.de/eJournals/mz3/default/index_4ringe_en.html#/14|archive-url=https://web.archive.org/web/20100706203938/http://www.audi-journals.de/eJournals/mz3/default/index_4ringe_en.html#/14 |archive-date=6 July 2010}}</ref> 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.<ref name="chronicle3">[https://web.archive.org/web/20090204194240/http://www.audi.com/audi/com/en2/about_audi_ag/history/chronicle/chronicle_1915_1929.html Audi chronicle 1915–1929]. audi.com</ref> Left-hand drive spread and established dominance during the 1920s because it provided a better view of oncoming traffic, making overtaking safer<ref name="chronicle3"/> when driving on the right. ===The merger of the four companies under the logo of four rings=== {{Main|Auto Union}} In August 1928, [[Jørgen Skafte Rasmussen|Jørgen Rasmussen]], the owner of [[Dampf-Kraft-Wagen]] (DKW), acquired the majority of shares in Audiwerke AG.<ref name="chronicle4">[https://web.archive.org/web/20090204030104/http://www.audi.com/audi/com/en2/about_audi_ag/history/chronicle/chronicle_1930_1944.html Audi chronicle 1930–1944]. Audi.com</ref> In the same year, Rasmussen bought the remains of the U.S. [[automobile manufacturer]] [[Rickenbacker (car)|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 ([[Audi Type P|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 (car)|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. ===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 their wartime activities.<ref name="dw.com">Audi's Nazi past, May 26, 2014, DW, https://www.dw.com/en/audi-comes-clean-about-its-nazi-past/a-17664050</ref> 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.<ref>May 26, 2014, Audi Used Forced Labour under Nazis in Germany, The Local.de, https://www.thelocal.de/20140526/audi-used-forced-labour-under-nazis-in-germany</ref> 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.<ref name="dw.com"/> Some of the company's factories were bombed by [[Allies of World War II|the Allies]].{{citation needed|date=May 2024}} ===Post-World War II=== [[File:1. Magdeburger Oldtimertag (5743586787).jpg|thumb|[[IFA F9]]]] 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]].{{citation needed|date=May 2024}} 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.{{citation needed|date=May 2024}} On 17 August 1948, Auto Union AG of Chemnitz was deleted from the commercial register.<ref name="chronicle4"/> These actions had the effect of liquidating Germany's Auto Union AG. The remains of the Audi plant of Zwickau became the [[Volkseigener Betrieb|VEB]] (for "People Owned Enterprise") {{Interlanguage link|Automobilwerk Zwickau|de|Automobilwerk Zwickau|vertical-align=sup}} or AWZ (in English: Automobile Works Zwickau). 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 later manufactured the infamous [[Trabant]] until 1991, after it was acquired by the Volkswagen Group following the reunification of Germany, and has since been substantially rebuilt. In 2021, production of the [[Audi Q4 e-tron]] began at the plant, marking the return of Audis being manufactured at Zwickau after over 80 years. ===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.<ref name="chronicle6">{{cite web|url=http://www.audi.com/audi/com/en2/about_audi_ag/history/chronicle/chronicle_1945_1959.html|archive-url=https://web.archive.org/web/20090204031240/http://www.audi.com/audi/com/en2/about_audi_ag/history/chronicle/chronicle_1945_1959.html|archive-date=4 February 2009 |title=Audi Worldwide: Home |publisher=Audi |date=15 April 2009 |access-date=27 April 2009}}</ref> The reformed company was launched 3 September 1949 and continued DKW's tradition of producing front-wheel drive vehicles with two-stroke engines.<ref name="chronicle6"/> This included production of a small but sturdy 125 cc motorcycle and a DKW delivery van, the [[DKW Schnellaster|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 [[DKW F89|first post-war mass-market passenger car]] plant capacity in [[Düsseldorf]] was rented from [[Rheinmetall|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,<ref>[[#Oswald|Oswald]], p 263</ref> [[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.<ref name=Motor197107>{{cite journal| editor-first=Charles | editor-last=Bulmer | title = The Audi-NSU Affair| journal=Motor| page =21|date = 24 July 1971}}</ref> 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 Beetle]]s per year.<ref name=Motor19710724>{{cite journal| first=Philip |last=Turner| title = Turner's Travel [to Wolfsburg]| journal=Motor| pages = 28–30|date = 24 July 1971}}</ref> 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 (automotive)|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 [[Audi F103|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 [[Heinrich Nordhoff|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#B1 (1972–1978)|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. [[File:Bundesarchiv B 145 Bild-F038791-0035, Wolfsburg, VW Autowerk.jpg|thumb|[[Audi 80]] [[assembly line]] in [[Wolfsburg]], 1973]] In 1969, Auto Union merged with [[NSU Motorenwerke AG|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 [[Audi A6|A6]] and [[Audi A8|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 [[Audi R8 (road car)|R8]] and the '''RS''' model range. ===Modern era=== [[File:Audi NSU Auto Union AG 1969.jpg|thumb|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 [[VW K70|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 [[Volkswagen Golf|Golf/Polo]] concept, one that led to a hugely successful world car. Ultimately, the Audi 80 and 100 (progenitors of the [[Audi A4|A4]] and [[Audi A6|A6]], respectively) became the company's biggest sellers, whilst little investment was made in the fading NSU range; the [[NSU Prinz|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]]<ref>{{cite web | url = http://www.worldcarfans.com/news.cfm/newsID/2050225.007/country/gcf/audi/audi-quattro-the-early-years | title = Quattro, The early years | access-date =2 November 2006 }}</ref> was accepted to develop the [[four-wheel drive]] technology in [[Volkswagen]]'s [[Volkswagen Iltis|Iltis]] military vehicle for an Audi performance car and [[Rallying|rally]] racing car. The performance car, introduced in 1980, was named the "[[Audi Quattro]]", a [[Turbocharger|turbo]]charged coupé which was also the first German large-scale production vehicle to feature permanent [[all-wheel drive]] through a centre [[differential (mechanical device)|differential]]. Commonly referred to as the "Ur-Quattro" (the "[[Proto-World language|Ur-]]" prefix is a German [[augmentative]] used, in this case, to mean 'original' and is also applied to the first generation of Audi's [[Audi S4|S4]] and [[Audi S6|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. [[File:Audi Quattro 20V - 001.jpg|thumb|right|[[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. 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 80|Audi 90]] and [[Audi 100]], the turbocharged [[Audi 100|Audi 200]] and the Audi V8. There was also a [[Audi Coupé|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 (automobile)|saloon]], [[coupé]] and [[Convertible (car)|convertible]] body styles. The five-cylinder was soon dropped as a major engine choice; however, a [[Turbocharger|turbocharged]] {{convert|220|PS|kW hp|abbr=on}} version remained. The engine, initially fitted to the 200 quattro 20V of 1991, was a derivative of the engine fitted to the [[Audi Quattro#Sport Quattro|Sport Quattro]]. It was fitted to the [[Audi Coupé]], named the [[Audi S2|S2]], and also to the Audi 100 body, and named the [[Audi S4|S4]]. These two models were the beginning of the mass-produced [[Audi S models|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<ref name="bus week">{{cite journal | title = Audi 1980s Scare May Mean Lost Generation for Toyota | journal=Business Week| date=4 February 2010|first1=Andreas|last1=Cremer|first2=Tom|last2=Lavell| url = http://www.businessweek.com/news/2010-02-04/audi-s-1980s-scare-may-mean-lost-generation-for-toyota-sales.html| archive-url = https://web.archive.org/web/20100208162109/http://www.businessweek.com/news/2010-02-04/audi-s-1980s-scare-may-mean-lost-generation-for-toyota-sales.html| archive-date = 8 February 2010| access-date=15 August 2010}}</ref> associated with reported incidents of [[sudden unintended acceleration]] linked to six deaths and 700 accidents.<ref name="bus week"/> At the time, NHTSA was investigating 50 car models from 20 manufacturers for sudden surges of power.<ref name="renamed">{{cite news | title = A Hard Sell for Audi | newspaper=The New York Times|first=John|last=Holusha|date=24 July 1988 | url = https://www.nytimes.com/1988/07/24/business/a-hard-sell-for-audi.html?scp=14&sq=audi%20sudden%20acceleration&st=cse | access-date=25 April 2010}}</ref> A ''[[60 Minutes]]'' report aired 23 November 1986,<ref name="debacle">{{cite web | title = The Audi 5000 Intended Unintended acceleration Debacle | publisher=The Truth About Cars | first = Paul | last = Niedermeyer | date = 7 March 2010 | url = http://www.thetruthaboutcars.com/the-best-of-ttac-the-audi-5000-intended-unintended-acceleration-debacle/| access-date=15 August 2010}}</ref> 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.<ref name="huber">{{cite web|first=Peter|last=Huber|url=http://www.manhattan-institute.org/html/cjm_18.htm|title=Manufacturing the Audi Scare|date=January 1990|publisher=Manhattan Institute for Policy Research|access-date=15 August 2010}}</ref><ref>{{cite web|publisher=Accuracy in Media|url=http://www.aim.org/media-monitor/the-cbs-cold-case-files/|title=The CBS 'Cold Case' Files|first=Sherrie|last=Gossett|date=13 May 2005|access-date=15 August 2010|archive-date=3 November 2008|archive-url=https://web.archive.org/web/20081103082732/http://www.aim.org/media-monitor/the-cbs-cold-case-files/|url-status=dead}}</ref> 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.<ref name="debacle"/> [[File:Audi 100 C3 (1988–1991) (10629216834).jpg|thumb|[[Audi 100]] C3, sold as the [[Audi 5000]] in the U.S.]] Audi contended, prior to findings by outside investigators,<ref name="renamed"/> that the problems were caused by driver error, specifically pedal misapplication.<ref name="renamed" /> 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.<ref>{{cite news|newspaper=The Washington Post|date=16 April 1989|url=http://www.highbeam.com/doc/1P2-1185635.html |archive-url=https://web.archive.org/web/20121102221624/http://www.highbeam.com/doc/1P2-1185635.html |archive-date=2 November 2012 | title=Unfair at Any Speed|first=Brock |last=Yates|access-date=15 August 2010 }}</ref> CBS did not acknowledge the test results of involved government agencies, but did acknowledge the similar results of another study.<ref name="huber"/> 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."<ref name="nhtsa2012">{{cite news | title = Pedal Application Errors | date = March 2012 | url = http://www.nhtsa.gov/staticfiles/nti/pdf/811597.pdf | access-date = 3 December 2013 | archive-date = 4 December 2013 | archive-url = https://web.archive.org/web/20131204053204/http://www.nhtsa.gov/staticfiles/nti/pdf/811597.pdf }}</ref> 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.<ref name="audi1988">{{cite news | title = Study of Mechanical and Driver-Related Systems of the Audi 5000 Capable of Producing Uncontrolled Sudden Acceleration Incidents | date = September 1988 | url = http://www.autosafety.org/sites/default/files/H%20Appendices%20Merge.pdf | access-date = 3 December 2013 | archive-date = 8 June 2012 | archive-url = https://web.archive.org/web/20120608034952/http://www.autosafety.org/sites/default/files/H%20Appendices%20Merge.pdf }}</ref> 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."<ref name="audi1988" /> 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.<ref name="bus week"/> 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.<ref name="bus week"/> 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,<ref name="bus week"/>—with resale values falling dramatically.<ref name="warranty">{{cite news | title = Audi Increases Warranty Plan | newspaper=The New York Times| date=27 July 1988 | url = https://www.nytimes.com/1988/07/27/business/company-news-audi-increases-warranty-plan.html| access-date=15 August 2010}}</ref> Audi subsequently offered increased warranty protection<ref name="warranty"/> and renamed the affected models—with the ''5000'' becoming the ''100'' and ''200'' in 1989<ref name="renamed"/>—and reached the same sales levels again only by model year 2000.<ref name="bus week"/> 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, Illinois|Cook County]] after appeals at the Illinois state and U.S. federal levels.<ref name="bus week"/> ===Model introductions=== In the mid-to-late 1990s, Audi introduced new technologies including the use of aluminium construction. Produced from 1999 to 2005, the [[Audi A2]] was a futuristic super mini, born from the Al2 concept, with many features that helped regain consumer confidence, like the aluminium [[space frame]], which was a first in production car design. In the A2 Audi further expanded their TDI technology through the use of frugal three-cylinder engines. The A2 was extremely aerodynamic and was designed around a [[wind tunnel]]. The Audi A2 was criticised for its high price and was never really a sales success but it planted Audi as a cutting-edge manufacturer. The model, a [[Mercedes-Benz A-Class#W168|Mercedes-Benz A-Class]] competitor, sold relatively well in Europe. However, the A2 was discontinued in 2005 and Audi decided not to develop an immediate replacement. The next major model change came in 1995 when the [[Audi A4]] replaced the [[Audi 80]]. The new nomenclature scheme was applied to the Audi 100 to become the [[Audi A6]] (with a minor facelift). This also meant the S4 became the [[Audi S6|S6]] and a new S4 was introduced in the A4 body. The S2 was discontinued. The [[Audi Cabriolet]] continued on (based on the Audi 80 platform) until 1999, gaining the engine upgrades along the way. A new [[Audi A3|A3]] [[hatchback]] model (sharing the [[Volkswagen Golf Mk4]]'s platform) was introduced to the range in 1996, and the radical [[Audi TT]] [[coupé]] and [[Roadster (automobile)|roadster]] were debuted in 1998 based on the same underpinnings. The petrol engines available throughout the range were now a 1.4 L, 1.6 L and 1.8 L four-cylinder, 1.8 L four-cylinder turbo, 2.6 L and 2.8 L [[V6 engine|V6]], 2.2 L turbo-charged five-cylinder and the 4.2 L [[V8 engine]]. The V6s were replaced by new 2.4 L and 2.8 L 30V V6s in 1998, with marked improvement in power, torque and smoothness. Further engines were added along the way, including a 3.7 L V8 and 6.0 L [[W12 engine]] for the A8. ===Audi AG today=== Audi's sales grew strongly in the 2000s, with deliveries to customers increasing from 653,000 in 2000 to 1,003,000 in 2008. The largest sales increases came from Eastern Europe (+19.3%), Africa (+17.2%) and the Middle East (+58.5%). China in particular has become a key market, representing 108,000 out of 705,000 cars delivered in the first three quarters of 2009. One factor for its popularity in China is that Audis have become the car of choice for purchase by the Chinese government for officials, and purchases by the government are responsible for 20% of its sales in China.<ref>{{cite web|url=http://blogs.ft.com/beyond-brics/2010/10/20/audis-millionth-car-sale-shows-china-still-tops/ |title=China: Audi sells a million |department=beyondbrics |work=Financial Times|date=20 October 2010 |access-date=9 January 2011 |url-access=subscription |last=Reed |first=John}}</ref> 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.<ref>{{cite news|author=Canada |url=https://www.theglobeandmail.com/globe-drive/new-cars/auto-news/audis-a-game/article1377213/ |title=Audi's A game |work=The Globe and Mail |access-date=12 March 2011 |location=Toronto}}</ref> May 2011 saw record sales for Audi of America with the new [[Audi A7]] and [[Audi A3]] TDI Clean Diesel.<ref>{{cite web|url=http://larsonautomotiveblog.com/audi-has-best-may-u-s-sales-in-its-history/|title=Audi has best May U.S. sales in its history!|date=3 June 2011|publisher=Larson Automotive Group|access-date=25 July 2012 |archive-url=https://web.archive.org/web/20130728093314/http://larsonautomotiveblog.com/audi-has-best-may-u-s-sales-in-its-history/|archive-date=28 July 2013}}</ref> In May 2012, Audi reported a 10% increase in its sales—from 408 units to 480 in the last year alone.<ref>{{cite news| url= http://www.thehindubusinessline.com/companies/article3479793.ece| title= Audi posts 10% growth in sales | date=1 June 2012}}</ref> Audi manufactures vehicles in seven plants around the world, some of which are shared with other VW Group marques<ref>{{cite web |url=http://www.audi.com/com/brand/en/company/production_plants/aurangabad.html#source=http://www.audi.com/com/brand/en/company/production_plants.html&container=page |title=Audi Worldwide > Company > Production plants > Aurangabad |publisher=Audi |date=27 August 2010 |access-date=12 March 2011 |archive-date=13 June 2011 |archive-url=https://web.archive.org/web/20110613062751/http://www.audi.com/com/brand/en/company/production_plants/aurangabad.html#source=http://www.audi.com/com/brand/en/company/production_plants.html&container=page }}</ref> 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, A5, A6 e-tron, Q6 e-tron) * [[Neckarsulm]], the former NSU plant, acquired by Volkswagen in 1969. Home of [[Audi Sport GmbH]] (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 Zwickau-Mosel Plant|Volkswagen Sachsen]] (Q4 e-tron) Outside of Germany, Audi produces vehicles at: * [[Anting]], China. A joint venture with [[SAIC Motor|SAIC]] * [[Aurangabad, Maharashtra|Aurangabad]], India. [[Škoda Auto Volkswagen India]] factory * [[Bratislava]], Slovakia. [[Volkswagen Slovakia]] factory (Q7 and Q8) * [[Changchun]], China. A joint venture with [[FAW_Group|FAW]] * [[Foshan]], China. A joint venture with [[FAW_Group|FAW]] * [[Győr]], Hungary (Q3) * [[Martorell]], Spain. A [[SEAT]] factory (A1) * [[Ningbo]], China. A joint venture with [[SAIC Motor|SAIC]] * [[Qingdao]], China. A joint venture with [[FAW_Group|FAW]] * [[San José Chiapa]], Mexico (Q5) * [[São José dos Pinhais]], Brazil * [[Tianjin]], China. A joint venture with [[FAW_Group|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.<ref>{{cite press release |title=AUDI AG opens automobile plant in Mexico |url=https://www.audi-mediacenter.com/en/presskits/audi-ag-opens-automobile-plant-in-mexico-6831|publisher=Audi AG |date=30 September 2016 |access-date=17 August 2019}}</ref> 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 (standard)|Qi]] [[Open standard|open]] [[interface standard]] at the [[Consumer Electronics Show]] (CES).<ref>{{Cite news|url=http://www.businesswire.com/news/home/20140109006406/en/Audi-Demonstrates-Qi-Wireless-Charging-CES-2014|title=Audi's Phone Box Updated With Qi Wireless Charging|date=9 January 2014|work=[[Business Wire]]|access-date=21 November 2016|via=[[Berkshire Hathaway]]}}</ref> 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.<ref>{{Cite news|url=https://www.bbc.com/news/business-27392157|title=Audi 'lied' about safety testing of vehicles|last=Dackevych|first=Alex|date=14 May 2014|work=[[BBC News]]|access-date=21 November 2016|publisher=[[BBC]]}}</ref> 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.<ref>{{Cite news|title = Germany investigates VW's ex-boss over fraud allegations|url = https://www.reuters.com/article/us-volkswagen-emissions-idUSKCN0RP14U20150928|work = Reuters|date = 28 September 2015|access-date = 29 September 2015}}</ref> Audi promised to quickly find a technical solution and upgrade the cars so they can function within emissions regulations.<ref>{{Cite news|title = Audi Says 2.1 Million Cars Affected by Emissions Software|url = https://www.bloomberg.com/news/articles/2015-09-28/audi-says-2-1-million-diesel-cars-affected-by-emissions-software|work= Bloomberg.com|access-date = 29 September 2015|first = Elisabeth Behrmann Mathieu|last = Rosemain|date = 28 September 2015}}</ref> Ulrich Hackenberg, the head of research and development at Audi, was suspended in relation to the scandal.<ref>{{Cite web | url=http://www.newsweek.com/audi-germany-volkswagen-scandal-378184 | title=Report: Germany Investigating Audi over Emissions|work=Newsweek |agency=Reuters | date=29 September 2015 |access-date=11 March 2020}}</ref> 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%.<ref>{{Cite web|title = Volkswagen, Audi sales increase despite emissions cheating scandal|url = http://www.latimes.com/business/autos/la-fi-hy-auto-sales-20151001-story.html|website = Los Angeles Times|date = 2 October 2015|access-date = 3 October 2015}}</ref> Audi's parent company Volkswagen announced on 18 June 2018 that Audi chief executive Rupert Stadler had been arrested.<ref>{{Cite news | url=https://www.bbc.co.uk/news/business-44517753 | title=Audi boss arrested over diesel scandal| work=BBC News| date=18 June 2018}}</ref> 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.<ref>{{Cite web|title = EPA: VW cheated on Audi, Porsche diesel SUVs, too|url = https://www.usatoday.com/story/money/cars/2015/11/02/epa-diesel-suv-volkswagen-audi-porsche/75044132/|website = USA Today|access-date = 2 November 2015}}</ref> 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.<ref>{{Cite news|title = Porsche Targeted as U.S. Expands VW Emissions Cheating Probe|url = https://www.bloomberg.com/news/articles/2015-11-02/u-s-expands-investigation-of-volkswagen-emissions-cheating|publisher = Bloomberg L.P.|access-date = 2 November 2015|first1 = Jeff |last1=Plungis |first2=Dana |last2=Hull |first3=Christoph |last3 = Rauwald|newspaper = Bloomberg.com|date = 2 November 2015}}</ref> 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.<ref>{{Cite news|url=http://tribune.com.pk/story/1231159/audi-ag-expresses-intent-assemble-vehicles-pakistan/|title=Audi AG expresses intent to assemble vehicles in Pakistan |date=15 November 2016|newspaper=The Express Tribune|access-date=15 November 2016}}</ref> Audi planned to cut 9,500 jobs in [[Germany]] starting from 2020 till 2025 to fund electric vehicles and digital working.<ref>{{Cite news|url=https://www.bbc.com/news/business-50563254|title=Audi to cut 9,500 jobs to fund electric car push|date=26 November 2019|access-date=27 November 2019|language=en-GB}}</ref> 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.<ref>{{Cite web|title = Audi with enhanced role in Volkswagen Group|url = https://www.volkswagenag.com/en/news/2020/02/Audi_with_enhanced_role_in_Volkswagen_Group.html|website = Volkswagen AG|date=28 February 2020|access-date = 14 March 2020}}</ref> This change took effect from 16 November 2020, when Audi became a wholly owned subsidiary of the Volkswagen Group.<ref>{{Cite web|title=AUDI AG: Entry of the transfer resolution in the commercial register|url=https://www.audi.com/content/dam/gbp2/company/investor-relations/kapitalmarktkommunikation/english/ad-hoc-announcements/2020/AUDI-AG-Entry-of-%20the-transfer-resolution-in-the-commercial-register-dgap.pdf |archive-url=https://ghostarchive.org/archive/20221009/https://www.audi.com/content/dam/gbp2/company/investor-relations/kapitalmarktkommunikation/english/ad-hoc-announcements/2020/AUDI-AG-Entry-of-%20the-transfer-resolution-in-the-commercial-register-dgap.pdf |archive-date=9 October 2022 |url-status=live|website = Audi AG|date=16 November 2020|access-date=22 November 2020}}</ref> In January 2021, Audi announced that it is planning to sell 1 million vehicles in China in 2023, comparing to 726,000 vehicles in 2020.<ref>{{Cite news|date=20 January 2021|title=Audi aims to sell one million cars in China in 2023|language=en|work=Reuters|url=https://www.reuters.com/article/us-volkswagen-china-idUSKBN29P05H|access-date=20 January 2021}}</ref>
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