Plans for Audi and Porsche to join Formula 1 have been approved, Volkswagen CEO Herbert Diess said following the board of directors’ decision on Monday.
Joining F1 will generate more money than it will cost, as Porsche and Audi are two of Volkswagen’s most important revenue streams, according to Diess.
F1 is averaging 1.1 million viewers on ESPN through its first four races of the season, up 22% compared to the same period last year.
Porsche and Audi, two of Volkswagen’s 12 car companies, would join separate F1 teams.
- Porsche intends to partner with Red Bull Racing.
- Audi is expected to join McLaren’s racing team.
In March, Audi was reportedly ready to offer around $556.3 million to buy a stake in McLaren’s F1 unit, per Reuters. A month later, the German luxury car brand reportedly raised its offer to $718 million, according to Germany’s Automobilwoche.
Porsche is considering an IPO to fund its move into F1 and development of electric vehicles. An IPO could come as early as Q4 2022.
Volkswagen and F1 align through an effort to promote sustainability. F1 plans to be carbon neutral by 2030, while Volkswagen aims to be carbon neutral on its balance sheet by 2050, which includes its vehicles and plants.
F1 is implementing new engine rules in 2026 requiring all power units to run on 100% sustainable fuel.