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August Horch founded A. Horch & Cie in 1899, however because of a dispute between him and the supervisory board, he was forced out of the company.

In 1909 Horch established a new company, ‘Horch Automobil-Werke GmbH’, however banned from using ‘Horch’ as a trade name in his new car business, he called a meeting with close business friends with means to rename the company. It was the son of one of these close friends, Franz Fikentscher, that gave the idea of using the name Audi after commenting “audiatur et altera pars...” or “wouldn't it be a good idea to call it audi instead of horch?“ Horch in German means hark or hear, where as Audi is taken from the word ‘audire’ meaning ‘to listen’ in Latin.

With its new name, Audi created its first automobile, the Audi Type A in 1910.