Volkswagen completed its takeover of Auto Union in 1966—not a new purchase of Audi. Volkswagenwerk AG first took effective control of Auto Union in 1965, then acquired the remaining shares. Auto Union was the historic company behind the Audi marque; its later merger with NSU helped shape the company lineage leading to today’s Audi.
When did Volkswagen take full ownership?
Volkswagenwerk AG acquired an initial 50.3% stake in Auto Union on 1 January 1965, giving it effective control. Audi MediaCenter dates full ownership to 1 November 1966, when Auto Union GmbH became a wholly owned Volkswagen subsidiary. Volkswagen’s own history also says Auto Union became wholly owned in 1966.
| Date | Ownership stage | Company involved |
|---|---|---|
| 1 January 1965 | Volkswagenwerk AG acquired 50.3%, gaining effective control. | Auto Union |
| 1 November 1966 | Auto Union became a fully owned Volkswagen subsidiary; the remaining shares had been acquired from Daimler-Benz in stages. | Auto Union GmbH |
| 1969 | Auto Union merged with NSU, creating AUDI NSU AUTO UNION AG, which was incorporated into Volkswagen Group. | AUDI NSU AUTO UNION AG |
That sequence is why “Volkswagen bought Audi” is convenient shorthand but not a precise description of the original transaction: the company Volkswagen acquired was Auto Union, not the modern AUDI AG.
Why did Volkswagen acquire Auto Union?
Volkswagen’s retrospective account says its Wolfsburg production was nearing capacity and Auto Union offered facilities, people and a route to market. These are Volkswagen’s stated explanations for the deal, rather than independently verified measures of the buyer’s motives.
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- Ingolstadt production: Volkswagen described the factory as having capacity for 100,000 vehicles a year.
- Experienced workforce: the site came with a skilled workforce.
- Sales and service network: Auto Union had more than 1,200 dealers and workshops, according to Volkswagen’s account.
- Engine technology: the acquisition package included a license for Daimler-Benz’s medium-pressure engine.
- Market positioning: Volkswagen says a board study considered an F 102-based model under the Audi name as a European mid-range alternative. Its history also notes the acquisition removed a direct competitor.
Was Audi owned by Daimler-Benz?
The shares Volkswagen acquired were in Auto Union, which was a Daimler-Benz subsidiary. Volkswagen began negotiations to buy the company from Daimler-Benz in 1964, then acquired control in 1965 and the remaining shares by November 1966. The transaction should therefore be described as Volkswagen’s staged acquisition of Auto Union from Daimler-Benz.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How does that history connect to Audi today?
Auto Union merged with NSU in 1969 to form AUDI NSU AUTO UNION AG. That merger is part of the company lineage behind today’s Audi, but it does not make the modern AUDI AG the same legal entity as Auto Union in 1966.
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In current terms, Volkswagen Group’s 2025 annual report identifies Volkswagen AG as the group parent and says it holds direct or indirect interests in AUDI AG. Audi’s company page describes Audi as a Volkswagen Group brand. The available official descriptions establish that group relationship, but do not specify a current share percentage here.
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