By Ryan Erik King

Copyright jalopnik

Despite Audi being synonymous with Quattro, the German automaker’s famous four-ring logo is entirely unrelated to its all-wheel-drive system and predates Quattro’s introduction by 48 years. The four interlocking rings are a direct reference to Auto Union, Audi’s predecessor, and its founding merger of four different automakers in 1932.

Audi’s corporate history begins with German engineer August Horch. He worked at Benz under founder Karl Benz and rose to become the head of vehicle production, a position he held until he left the company in 1899. Why did he go? Horch founded his own automaker, also named after himself, Horch. The new company quickly found a permanent home in Zwickau, Saxony. However, Horch wouldn’t lead the company forever. He resigned in 1909 after a dispute with the company’s board of directors.

Horch would immediately found a new manufacturer named Audi, also based in Zwickau. The company’s name was a play on words. “Horch” is also German for listen, with “Audi” being the Latin translation. The third manufacturer entered the picture when Audi struggled financially in the late 1920s. The company was bought in 1928 by Danish industrialist Jørgen Skafte Rasmussen. He also owned DKW, another Saxon automaker.

Auto Union was formed in 1932 at the stern suggestion of the State Bank of Saxony. The goal was to consolidate Saxony’s automotive industry and create a more profitable business entity. The bank was a major financier for Horch and Rasmussen, then quickly purchased Wanderer, the merger’s fourth Saxon automaker. The State Bank of Saxony ended up with an 80% stake in Germany’s second-largest automaker.