Audi will join Formula 1 starting in 2026 as the Volkswagen Group brand bets it can bolster its business by competing in the popular racing circuit.
Audi will build a dedicated F1 powertrain at a facility in Neuburg, Germany, the brand said Friday in a statement. It will make a decision on which team to partner with by the end of the year.
Audi has been in talks with the Swiss-based Sauber Group, whose team competes under the Alfa Romeo name, according to reports by Reuters and other media.
F1 racing intends to switch to cars running on synthetic fuel from 2026 as part of a plan to become carbon neutral by the end of the decade.
The change in technology is a unique opportunity to start competing in the franchise that has been dominated by Mercedes.
The new rules from 2026 will bring greater electrification and the use of advanced sustainable fuel. Power unit manufacturers will also be subject to a cost cap from next season.
“Motorsport is an integral part of Audi’s DNA,” CEO Markus Duesmann said in the statement. “With the new rules, now is the right time for us to get involved.”
“Formula One is both a global stage for our brand and a highly challenging development laboratory,” he added.
VW Group’s supervisory board in April approved plans for Audi and the Porsche sports-car brand to potentially join the competition. Porsche is expected to enter F1 in 2026 in partnership with current championship leaders Red Bull.
Outgoing VW Group CEO Herbert Diess has said both businesses see F1 as the most important lever to boost brand value and pointed to the competition’s plans for expansion in China and the U.S.
Adam Baker, a motorsport veteran and former employee of Formula One’s FIA governing body, will be the CEO of Audi’s F1 project.
Reuters contributed to this report