What's behind Audi's Decision to Compete in Formula 1 Beginning in 2026?

• Audi, owned by Volkswagen Group, has never before competed in Formula 1.

• Audi will enter Formula 1 in 2026 as a power unit manufacturer, likely with Sauber—the F1 team currently branded as Alfa Romeo.

• Also on Friday, Alfa Romeo announced that it would be leaving Formula 1 after the 2023 season.

Audi has finally confirmed that it will enter Formula 1 in 2026 as a power unit manufacturer, amid expectation that it will eventually purchase a majority stake in Sauber Motorsport.

The German car giant, owned by Volkswagen Group, has never before competed in Formula 1.

The news was announced during a press conference at the Belgian Grand Prix on Friday, with senior Audi figures in attendance alongside representatives from Formula 1 and the FIA.

“Formula 1 is both a global stage for our brand and a highly challenging development laboratory,” said Audi chairman Markus Duesmann. “The combination of high performance and competition is always a driver of innovation and technology transfer in our industry. With the new rules, now is the right time for us to get involved. After all, Formula 1 and Audi both pursue clear sustainability goals.”

Audi has only announced its involvement as a PU provider so far but it will partner with an existing team, rather than create a new operation from scratch.

That team will be announced by the end of 2022 and is widely expected to be Sauber Motorsport, which currently competes under the Alfa Romeo banner. Alfa Romeo, meanwhile, announced Friday, after Audi’s news, that it will cease its commercial involvement of Sauber after 2023.

Formula 1’s 2026 power unit regulations were finally approved by the FIA last week, following a delay by President Mohammed Ben Sulayem, giving the green light for parent company VW to authorize Audi’s Formula 1 project.

Discussions involving Audi were also smoothed by the presence of Formula 1 CEO Stefano Domenicali, who previously worked for Audi, which included a four-year spell as the CEO of subsidiary Lamborghini.

Audi, along with sister company Porsche, were involved in the lengthy discussions surrounding Formula 1’s 2026 power unit, as the championship sought to entice them to the grid.