Audi is a wholly owned subsidiary of the Volkswagen Group, the third largest automaker in the world. Notable brands under the Volkswagen group include Lamborghini, Bentley, and of course, Volkswagen. The Volkswagen group also currently owns a 49.9% stake in another well-known German automaker, Porsche.
The two companies are scheduled to merger completely some time in 2011. The Volkswagen Group acquired Audi - then known as Auto Union GmbH - from Daimler-Benz in January of 1965. Since then, the company has built itself a reputation of producing sedans, SUVs, and sports cars that rival even other established German manufacturers such as BMW and Mercedes Benz.
For more information on the Volkswagen Group, you can visit their website at http://www.volkswagenag.com/vwag/vwcorp/content/en/homepage.html. You can also visit Audi's official website: http://www.audi.com/. Wikipedia is also a great source of information if you're looking into the rich history of these car companies, or just browse through some of their most significant cars.
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