Volkswagen’s prime brands Audi and Porsche have decided to join Formula 1 according to the VW Chief Executive Herbert Diess.
The pair of premium German carmakers have been the subject of strong speculation in recent months about them entering the pinnacle of motorsport.
Diess, speaking on YouTube, said that Porsche's preparations were a little more concrete.
Formula 1 are planning on unveiling new power unit regulations for the 2026 season which could provide the perfect opportunity for VW to enter through Audi and Porsche.
The four main objectives of the new rules include retaining the 1.6 litre V6 engine. Another target is increasing it’s electrical output from 120kW - which equates to around 160bhp to 350kW.
The FIA also wants to eliminate the MGU-H and introduce a power unit cost cap which would fit Audi’s declared prerequisite of far-reaching changes to make F1 more sustainable.
Porsche have had minimal involvement in Formula 1 but have worked with Red Bull in the world rally championship, they did not disclose how it planned entering F1.
Audi are set to offer $556.30 million for the world renowned McLaren brand as a means to enter although Porsche are looking to develop a long-term partnership with Oracle Red Bull Racing starting in multiple years’ time.
McLaren Racing chief executive Zak Brown said at the time that the Formula One team was "definitely not for sale" and not looking for further equity partners, but that "very preliminary" conversations had taken place with Volkswagen.
Various other teams have also been reportedly linked to Audi which are Williams, Sauber and Aston Martin.
The Ingolstadt based company don’t want to fund to creation of a works team but it seems prefers to avoid following in Honda’s footsteps and purely be an engine supplier.
McLaren and Williams have recently received new investors which means buying into a team is much more difficult than previously, Audi seemingly demand a significant stake to have control.
Volkswagen are preparing a possible listing of Porsche AG during the fourth quarter of 2022 which has prompted the potential decision to enter Formula 1.