NSU Motorenwerke instance of automobile manufacturer
NSU Motorenwerke AG, or NSU, was a German manufacturer of automobiles, motorcycles and pedal cycles, founded in 1873.  Acquired by Volkswagen Group in 1969, VW merged NSU with Auto Union, creating Audi NSU Auto Union AG, ultimately Audi. The name NSU originated as an abbreviation of "Neckarsulm", the city where NSU was located.History
Origin
NSU originated as the "Mechanische Werkstätte zur Herstellung von Strickmaschinen", a knitting machine manufacturer established in 1873 by Christian Schmidt, a technically astute entrepreneur, in the town of Riedlingen on the Danube. The business relocated in 1880 to Neckarsulm. There followed a period of rapid growth and in 1886, the company began to produce bicycles, the first of them a 'high wheeler' or 'Penny-farthing' branded as the "Germania". By 1892, bicycle manufacturing had completely replaced knitting machine production.  At about this time, the name NSU appeared as a brand name.
The first NSU motorcycle appeared in 1901, followed by the first NSU car in 1905. During World War I the company produced motorcycles and trucks for the German Army.
In 1932, under pressure from their bank (Dresdner Bank), NSU recognised the failure of their attempt to break into volume automobile production, and their recently built car factory in Heilbronn was sold to Fiat, who used the plant to assemble Fiat models for the German market. From 1957, NSU-Fiat cars assumed the brand name Neckar.
During World War II NSU produced the Kettenkrad, the NSU HK101, a half-tracked motorcycle with the engine of the Opel Olympia. They also made the 251 OSL motorcycle during the war.Volkswagen Group takeover
The development of the rotary engine was very cost-intensive for the small company.  Problems with the apex seals of the engine rotor significantly damaged the brand's reputation amongst consumers.  In 1969, the company was taken over by Volkswagenwerk AG, which merged NSU with Auto Union, the owners of the Audi brand which Volkswagen had acquired five years earlier. The new company was called Audi NSU Auto Union AG and represented the effective end of the NSU marque with all future production to bear the Audi badge (although retaining the four interlocking circles of Auto Union). The management of the new combine was initially based at the Neckarsulm plant, however when the small rear-engined NSU models (Prinz 4, 1000, 1200) were phased out in 1973, the Ro 80 was the last car still in production carrying the NSU badge. Audi never made use of the brand name NSU again after April 1977, when the last Ro 80 was sold. In 1985, the company name was shortened to Audi AG and management moved back to Audi's headquarters in Ingolstadt.
Even as production of the Ro 80 continued in the Neckarsulm plant, production of larger Audi models like 100 and 200 was started.  The Porsche 924 and later Porsche 944 were also assembled at Neckarsulm.  Those models were joint venture projects of Porsche and VW, but Porsche did not have the internal capacity to build the 924 and 944.  Currently, Neckarsulm is the production plant for Audi's topline vehicles like A6, A8, and R8.  It is also the home of the "Aluminium- und Leichtbauzentrum" where Audi's aluminium-made space frame bodies are designed and engineered.
NSU is primarily remembered today as the first licensee and one of only four automobile companies to produce cars for sale with rotary-piston "Wankel engines".  NSU invented the principle of the modern Wankel engine with an inner rotor.  The NSU Ro 80 was the second mass-produced two-rotor Wankel-powered vehicle after the Mazda Cosmo.  In 1967, NSU and Citroën set up a common company, Comotor, to build engines for Citroën and other car makers. Norton made motorcycles using Wankel engines. AvtoVaz (Lada) manufactured single and twin rotored Wankel powered cars in the early 1980s. Only Mazda has continued developing the Wankel engine and made several more cars with the Wankel engine.
NSU developed their last car in a recognisably conventional layout, (front engine front wheel drive, water cooled) - this was the NSU K70, Volkswagen adopted this as their first water cooled front-engined car the VW K70. The first VW Golf cars used the NSU K70 engine which was almost identical. Subsequent VW models shared no lineage with NSU models, being descended from Auto-Union designs.
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