The company was established first by August Horch and his first business partner Salli Herz on November 14, 1899 at Ehrenfeld, Cologne.August Horch: "Ich baute Autos - Vom Schmiedelehrling zum Autoindustriellen", Schützen-Verlag Berlin 1937 August Horch was a former production manager for Karl Benz. Three years later in 1902 he moved with his company to Reichenbach im Vogtland. On May, 10th, 1904 he founded the Horch & Cie. Motorwagenwerke AG, a joint-stock company in Zwickau (State of Saxony). The city of Zwickau was the capital of the South Western Saxon County and one of Saxony's industrial centres at the time.
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