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You can find the whole story here:
Audi and Horsch did not split. Horsch became Audi. There was another bussiness in germany called horsch wich was challenging the automakers legal right to use the same name. The name was changed to Audi, the latin version of the same word. I thought Auto Union was comprised of Audi, nsu, dkw and VW. Not sure about that but I know Audi and Horsch were never separate makes.
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