Volkswagen’s high-end brands Audi and Porsche have decided to join Formula 1, Volkswagen Chief Executive Herbert Diess said on Monday.

For several months there has been speculation that the two brands were negotiating an association to enter the highest category of international motorsports.

Diess, speaking on YouTube, said Porsche’s preparations were a bit more concrete.

The German carmaker, which has not previously participated in Formula 1 but has collaborated with Red Bull in the World Rally Championship, did not announce how it planned to break into the sport.

Audi is willing to offer around 500 million euros ($556.30 million) for British luxury sports car maker McLaren as a means of entry, a source told Reuters in March, while Porsche intends to establish a long-term partnership. term with the Red Bull team from several years.

The decision comes as Volkswagen prepares for a possible IPO of Porsche AG scheduled for the fourth quarter of this year, although sources have said entry into Formula 1 racing would only be likely within a few years.

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