Volkswagen reportedly eyeing works teams for F1 entry over engine supplier role

Volkswagen reportedly wants to enter F1 with its sub-brands Porsche and Audi as fully-fledged works teams rather than as mere engine suppliers.

Originally reported by German outlet FAZ, the VW brands are reportedly in advanced talks with existing F1 teams to field their own entries in 2026.

Earlier this month, media reports seemingly confirmed Volkswagen’s intention to enter F1 in 2026, when new engine regulations are set to come into effect. It was speculated that the brands would most likely become engine suppliers to current teams rather than field their own operations.

According to the original report, both Volkswagen brands would pool their resources to develop a new power unit for the 2026 regulations, with Porsche supplying Red Bull and its sister team Alpha Tauri, and Audi supplying McLaren.

The new report by FAZ claims that the VW brands are looking to have a larger presence within the sport than just being engine suppliers to existing teams.

Porsche is reportedly in advance talks with Red Bull for a joint operation that would see the German manufacturer potentially taking part ownership of the team. Meanwhile, Audi has reportedly offered to buy McLaren, including its sportscar business, along with the F1 operation.

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Why McLaren and Red Bull are best teams for Volkswagen to enter F1 with

At the end of 2020, Volkswagen, one of the biggest automakers in the world, with nearly half a dozen iconic brands under its stable, quit all forms of motorsport, including Formula E, DTM, and more. Various factors, such as the increased focus on electrification, and the difficulties brought on by the COVID-19 pandemic had led to the decision.

This meant that some of the iconic brands within Volkswagen, such as Porsche and Audi, were left without motorsport programs. Unlike Volkswagen, however, Porsche and Audi need motorsports to survive, as their identities are closely tied to track performance.

As such, their entry into the pinnacle of motorsport would seem to be the right choice, especially given the changes that F1 has made in recent years to be more attractive and relevant to manufacturers.

Meanwhile, entering F1 is a significant challenge in itself, and the easiest way to do it would be to take over an existing operation and rebrand it. Since most top teams already have enough investment and backing, at first glance, it would seem that Volkswagen's only options are teams at the back of the grid.

However, the circumstances brought on by the pandemic have given the company a unique opportunity where its brands can partner with teams at the top of the grid.

Porsche is courting Red Bull – which was left without an engine partner after Honda decided to pull out of the sport at the end of last year. While Red Bull might be unwilling to sell its team to Porsche, it might give up its sister team, with which it has incredibly close co-operation.

For Audi, the McLaren team that is on the path towards the front of the grid is a perfect choice. It would seem odd for McLaren to already be making a deal with a new engine partner, given that they only switched back to Mercedes in 2021.

However, the independent British team also has a sportscar business that was battered by the pandemic. The team's financial health became so dire by the end of 2020 that McLaren had to sell its iconic headquarters and lease it back.