Volkswagen's Audi and Porsche divisions to join Formula One

Porsche intends to establish a long-term partnership with racing team Red Bull starting in several years' time. File photo

Volkswagen's premium brands Audi and Porsche will join Formula One after convincing the German car-making group that the move will bring in more money than it will cost, VW chief executive Herbert Diess has said. 

Discussions by the board of directors about the two brands' plans had created some divisions, said Mr Diess at an event in Wolfsburg, where the German carmaker is headquartered.

But ultimately the brands, which next to VW's China business are the group's most important income suppliers, made the case that they would pull in more money for Wolfsburg with a Formula One commitment than without one, according to Mr Diess.

"You just run out of arguments," he said.

There has been speculation for several months that the two brands were negotiating partnerships to enter the highest class of international motor racing, which for much of the last decade has been dominated by Volkswagen's German rival Mercedes. 

Mr Diess said that Porsche's preparations for entering Fomula One were a little more concrete than Audi's. Audi is ready to offer around €500m for British luxury sports carmaker McLaren as a means to enter, a source told Reuters in March, while Porsche intends to establish a long-term partnership with racing team Red Bull starting in several years' time. 

• Reuters