It is one of the predecessors of the present day Audi company, which itself resulted from the merger of Auto Union Aktiengesellschaft (AG) and NSU Motorenwerke in 1969.

The city of Zwickau was the capital of the South Western Saxon County and one of Saxony's industrial centres at that time.

[3] In 1932 both companies from Zwickau (Horch and Audi) merged with Zschopauer Motorenwerke J. S. Rasmussen (the DKW brand) and the Wanderer car-production facilities to become the Auto Union corporation of Saxony.

The Silver Arrow racing cars of the Auto Union racing team in Zwickau—developed by Ferdinand Porsche and Robert Eberan von Eberhorst, and driven by Bernd Rosemeyer, Hans Stuck, Tazio Nuvolari and Ernst von Delius—became known the world over in the 1930s.

The first Horch had a 4.5 hp (3.4 kW; 4.6 PS) engine, with an alloy crankcase, a unique achievement in those days.

In contrast with the powerful cars of later years, the first Horch could barely reach a top speed of 32 km/h (20 mph).

In March 1902, August Horch produced a 20 hp (15 kW; 20 PS) four-cylinder car with a shaft drive in Reichenbach in Vogtland.

In 1906 a Horch automobile driven by Dr. Rudolf Stöss from Zwickau won the Herkomer Competition (equivalent to a 'brand-name' world championship at the time).

He succeeded in making the Horch brand highly desirable by introducing art into the firm's advertising.

In 1928, the company was acquired by Jørgen Skafte Rasmussen, owner of DKW (from the German Dampfkraftwagen, or steam engine vehicle) who had bought the remains of the US automobile manufacturer Rickenbacker in the same year.

Eventually, on 29 June 1932, Horch, Audi, DKW and Wanderer merged to form the Auto Union.

Between 1935 and 1937 Auto Union cars won 25 races, driven by Ernst von Delius, Tazio Nuvolari, Bernd Rosemeyer, Hans Stuck and Achille Varzi.

Due to widespread poverty in postwar Germany, only small DKW vehicles with two stroke engines were produced.

On June 24, 2006, a rare 1937 Horch 853A Sport Cabriolet in original unrestored, unprepared condition sold at auction in Cortland, NY for US$299,000.