The present firm Auto Union came into being in 1932 through the amalgamation of four long-established auto manufacturers located in the Saxon industrial region - Audiwerke AG, of Zwickau; DKW AG, of Zschopau; Horch Motorwagenwerke AG, of Zwickau; and Wanderer Werke AG, Siegmar. Their union marked the creation of an automobile manufacturing combine capable of matching the German subsidiaries of the major American auto manufacturers in terms of production and price. During the early 1930s the Auto Union firm won a substantial share of the German domestic market for automobiles and made strong showings in the export of its cars – particularly the economy models of the DKW marque – to Europe and even further abroad.
Auto Union maintained its own in-house racing team. The development of Auto Union racing cars began 1933 by specialists of Horch works. The first cars ran in the winter 1933/34, on the Nürburgring, AVUS and Monza. Auto Union pioneered the use of telemetry recording devices to record data such as engine revolutions while the car was being tested, allowing the engineers to study the collected data at a later date. Auto Union was among the first large German auto manufacturers to develop vehicles for the Heer, including all wheel drive personnel cars and light motor trucks.
In 1935 it acquired the firm Vidal und Sohn Tempo-Werk GmbH of Harburg, a manufacturer of motorcycles, which strengthened the firm’s product line in that sector. The following year it entered the farm equipment sector through the acquisition of Landmaschinenfabrik Franz Richter AG of Döbeln. Auto Union entered the aircraft engine manufacturing sector in 1937 through creation of a subsidiary, the Mitteldeutsche Motorenwerke. In 1938 ground was broken for a new factory in the town of Wolfsburg, in Lower Saxony, where Auto Union would eventually build its new Type 60 low-price economy car. The firm established Mechanische Werke Cottbus as a subsidiary to specialise in production of defence equipment.
Subsidiary companies of the firm include:
Auto Union AG, Tempo Werke, Harburg (motorcycle manufacture)
Auto Union AG, Union-Werke, Mittweida (automobile components)
Auto Union AG, Volkswagen-Werke, Wolfsburg (automobile manufacture)
Auto Union AG, Werk Spandau, Berlin (defence equipment)
Auto Union AG, Werke Audi, Zwickau (automobile manufacture)
Auto Union AG, Werke DKW, Zschopau (automobile manufacture)
Auto Union AG, Werke Horch, Zwickau (automobile manufacture)
Auto Union AG, Werke Wanderer, Siegmar (automobile manufacture)
Landmaschinenfabrik Franz Richter AG, Döbeln (agricultural equipment)
Mechanische Werke Cottbus GmbH, Cottbus (defence equipment)
Mitteldeutsche Motorenwerke GmbH, Taucha (aircraft engines)
Affiliated companies of the firm include:
In Germany
Eisenacher Karosseriewerke Assman, Eisenach (metal fabrication)
Gläser-Karosserie GmbH, Dresden (metal fabrication)
Karosseriewerk August Nowack AG, Bautzen (metal fabrication)
Karosseriewerke August Zschau, Leipzig (metal fabrication)
Zwickauer Maschinenfabrik AG, Zwickau (machine tools and equipment)
Abroad
Auto-Union Argentinas S.A., Santa Rosa, Argentina (auto assembly and sales)