Volkswagen likely to allow Audi, Porsche to enter Formula One: Report

Volkswagen will likely allow Audi and Porsche to foray into Formula One motor racing' at a meeting next week, Reuters reported, citing two sources. While the first source said that it is after the meeting that both the companies will be able to communicate their intentions to enter into Formula One, the second added that there was a "good chance" of a positive decision.

Talks of Audi and Porsche forming partnerships with existing Formula One teams as a method of entry into the motor racing world has long been happening. However, last year Audi and McLaren had denied reports that a partnership between the two brands had already been formed. They said that it was rather under discussion, with a decision to be expected this year.

The report stated that while Audi will offer around $556.30 million for McLaren, Porsche intends to establish a long-term partnership with racing team Red Bull starting in several years' time. And for Volkswagen, though it hasn't previously been involved in Formula One, it has worked with Red Bull in the world rally championship.

In November last year, Reuters had reported that Volkswagen's ultimate decision will rest on whether Formula One follows through on its plans to switch to synthetic fuels by 2026, and on McLaren's progress regarding electrification of its vehicles.

Volkswagen is working towards a transition to electric vehicles, and has invested the most of any global carmaker by far in electric vehicle production and batteries. It intends to clean up its image from the Dieselgate emissions scandal while remaining in line with governmental carbon reduction targets. The decision comes as the company already grapples with the uncertainty of the impact of the Russia's invasion of Ukraine on its finances.