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Like most German manufacturing, at the onset of World War II the Auto Union plants were retooled for military production, and were a target for allied bombing during the war which left them damaged.Overrun by the Soviet Army in 1945, on the orders of the Soviet Union military administration the factories were dismantled as part of war reparations.In 1932, Audi merged with Horch, DKW, and Wanderer, to form Auto Union AG, Chemnitz.It was during this period that the company offered the Audi Front that became the first European car to combine a six-cylinder engine with front-wheel drive.

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After the final few Audis were delivered in 1939 the "Audi" name disappeared completely from the new car market for more than two decades.August Horch left the Audiwerke in 1920 for a high position at the ministry of transport, but he was still involved with Audi as a member of the board of trustees.In September 1921, Audi became the first German car manufacturer to present a production car, the Audi Type K, with left-handed drive.In the same year, Rasmussen bought the remains of the U. automobile manufacturer Rickenbacker, including the manufacturing equipment for eight-cylinder engines.These engines were used in Audi Zwickau and Audi Dresden models that were launched in 1929.

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