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Modern era

Participation certificate of the Audi NSU Auto Union AG, issued August 1969
The new merged company was incorporated on 1 January 1969 and was known as Audi NSU
Auto Union AG, with its headquarters at NSU's Neckarsulm plant, and saw the
emergence of Audi as a separate brand for the first time since the pre-war era.
Volkswagen introduced the Audi brand to the United States for the 1970 model year.
That same year, the mid-sized car that NSU had been working on, the K70, originally
intended to slot between the rear-engined Prinz models and the futuristic NSU Ro
80, was instead launched as a Volkswagen.

After the launch of the Audi 100 of 1968, the Audi 80/Fox (which formed the basis
for the 1973 Volkswagen Passat) followed in 1972 and the Audi 50 (later rebadged as
the Volkswagen Polo) in 1974. The Audi 50 was a seminal design because it was the
first incarnation of the Golf/Polo concept, one that led to a hugely successful
world car. Ultimately, the Audi 80 and 100 (progenitors of the A4 and A6,
respectively) became the company's biggest sellers, whilst little investment was
made in the fading NSU range; the Prinz models were dropped in 1973 whilst the
fatally flawed NSU Ro80 went out of production in 1977, spelling the effective end
of the NSU brand. Production of the Audi 100 had been steadily moved from
Ingolstadt to Neckarsulm as the 1970s had progressed, and by the appearance of the
second generation C2 version in 1976, all production was now at the former NSU
plant. Neckarsulm from that point onward would produce Audi's higher-end models.

The Audi image at this time was a conservative one, and so, a proposal from chassis
engineer Jörg Bensinger[26] was accepted to develop the four-wheel drive technology
in Volkswagen's Iltis military vehicle for an Audi performance car and rally racing
car. The performance car, introduced in 1980, was named the "Audi Quattro", a
turbocharged coupé which was also the first German large-scale production vehicle
to feature permanent all-wheel drive through a centre differential. Commonly
referred to as the "Ur-Quattro" (the "Ur-" prefix is a German augmentative used, in
this case, to mean 'original' and is also applied to the first generation of Audi's
S4 and S6 Sport Saloons, as in "UrS4" and "UrS6"), few of these vehicles were
produced (all hand-built by a single team), but the model was a great success in
rallying. Prominent wins proved the viability of all-wheel-drive racecars, and the
Audi name became associated with advances in automotive technology.

In 1985, with the Auto Union and NSU brands effectively dead, the company's
official name was now shortened to simply Audi AG. At the same time the company's
headquarters moved back to Ingolstadt and two new wholly owned subsidiaries; Auto
Union GmbH and NSU GmbH, were formed to own and manage the historical trademarks
and intellectual property of the original constituent companies (the exception
being Horch, which had been retained by Daimler-Benz after the VW takeover), and to
operate Audi's heritage operations.

Audi Quattro
In 1986, as the Passat-based Audi 80 was beginning to develop a kind of
"grandfather's car" image, the type 89 was introduced. This completely new
development sold extremely well. However, its modern and dynamic exterior belied
the low performance of its base engine, and its base package was quite spartan
(even the passenger-side mirror was an option). In 1987, Audi put forward a new and
very elegant Audi 90, which had a much superior set of standard features. In the
early 1990s, sales began to slump for the Audi 80 series, and some basic
construction problems started to surface.

Through the early 1990s, Audi began to shift its target market upscale to compete
against German automakers Mercedes-Benz and BMW. This began with the release of the
Audi V8 in 1990. It was essentially a new engine fitted to the Audi 100/200, but
with noticeable bodywork differences. Most obvious was the new grille that

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