Audi in China
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Case Code: BSTR431 Case Length: 16 Pages Period: 1988-2012 Pub Date: 2013 Teaching Note: Not Available |
Price: Rs.500 Organization: Audi, Volkswagen Industry: Automobile Countries: China Themes: International Business, Globalization |
Abstract Case Intro 1 Case Intro 2 Excerpts
About Audi
The history of Audi dates back to November 1899, when August Horch (Horch) established A Horch & Cie. Motorwagen Werke (Horch & Cie) in Cologne, Germany. The company released its first car in 1901. Later in 1909, Horch left the company after differences cropped up between the Board of Management and the Supervisory Board. He established a car company called Audi at Zwickau, Germany, on July 16, 1909. The company began its operations as Audi Automobilwerke GmbH from April 25, 1910. In late 1914, it became a listed company. In 1928, the Audi brand was bought by J S Rasmussen, who acquired a majority shareholding in the company.
In 1929, the Western economies experienced an economic downturn as a result of a stock market collapse. The economic crisis, which came to be known as the Great Depression , lasted from 1929 to 1939. To withstand the recession, Audi, with backing from the State Bank of Saxony, merged with three other automobile companies, Horch & Cie, DKW , and Wanderer in 1932 and formed the Auto Union AG (Auto Union). A new logo with four interlocking rings was designed to represent the inseparable unity among the merged companies. Auto Union AG was headquartered in Chemnitz, Germany, and it became the second largest motor vehicle manufacturer in Germany. Even after the merger, the individual identity of the merged companies was maintained. Each company was assigned a different market segment — DKM dealt in motorcycles and small cars, Wanderer in midsize cars, Audi in deluxe midsize cars, and Horch & Cie in luxury cars.
By 1934, one in every four cars registered in Germany was supplied by the Auto Union. In 1939, production was halted due to the World War II. The group was ordered to manufacture armaments instead of civilian vehicles. By the end of 1940, the production of Audi cars had stopped completely. In 1945, the War came to an end and all the units of Auto Union AG came under East Germany, which was controlled by the Soviet Union. The plants were completely dismantled by the Soviet forces. In late 1945, a depot for Auto Union parts was established in Ingolstadt, West Germany...
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