German automaker Audi is confirmed to take over the Sauber team, which will be in effect from the start of the 2026 season. Audi, part of the Volkswagen family, confirmed that they will join Formula 1 as an engine supplier that will pave the way for reduced carbon emissions through 100% sustainable fuels. But, before Audi could step into its role, they could be forced to sell their company.

Yeah, stuff like this is unheard of, but going by the current rumor mills spreading across the F1 community, Audi is willing to dilute its shares to a Qatari state fund. And this just might be the ripple effect of what Volkswagen is going through in its home country.

Volkswagen’s cost-cutting measures might derail Audi’s ambitious F1 plans

Audi’s parent company is undergoing a major crisis where they are expected to close down three plants in Germany. This domestic factory closure will be the first in the company’s 87-year history. Despite being one of the biggest car manufacturers in the world, Volkswagen hasn’t been able to fire back up on all cylinders since the pandemic.

With the growing competition, they have managed to sell 500,000 fewer cars in Europe in a year when compared to pre-COVID-19 years, according to a report by CNN. Now, this has forced Audi into action and to do what they can to ensure their scheduled arrival in the Formula 1 paddock by 2026. And, to make that happen, they’ve decided to cut a deal with the Qatari state fund.

Going by F1 Insider’s report, Audi is expected to announce the dilution of its ownership rights at the Qatar GP this weekend. But instead of cashing out on this money to secure jobs back in Germany, Audi is looking to make use of this capital and fund its own engine, which will be rolled out in 2026. But given that Volkswagen can have a final say, by no means is the Audi F1 project secured. In fact, there are reports that top brass in Wolfsburg is considering scrapping the entire Formula 1 Audi project.

Although nothing can be said for certain regarding what becomes of Audi and its Formula 1 program. On the flip side of this rumor, American manufacturer Cadillac was finally given the green light by FIA to join F1 as the 11th engine supplier team. This move will also allow Andretti Global to finally have its presence in the F1 circuits.

Cadillac’s entry to Formula 1 was far from a straightforward drive

The American manufacturer had long been working with Andretti Global to enter the Formula 1 paddock. The initial bid was accepted by the FIA, but rising tensions and pushback from the 10 active teams resulted in the bid being refused. Well, the matter didn’t end here, as the US Congress took matters into its own hands and launched an investigation on Liberty Media Group, the owners of the racing series.

The anti-trust violation could’ve cost Liberty Media a fine of $2 billion and avoided the financial catastrophe. Liberty boss John Malone has now allowed Cadillac to enter the paddock. It took more than just elbow grease for Andretti’s to get their spot in the grid, and interestingly, like Audi, they will be joining F1 from the 2026 season. However, with TWG Global now in the picture, it’s hard to guess how big of a say Andretti Global will get into running this new race team.

But the good news for American race fans is that legendary driver Mario Andretti will serve as the director of board for the General Motors F1 team. “I feel very lucky that I’ve been able to stick around for this long and do what I love for so long. And the idea that the Cadillac F1 Team wants me around….I’ll help where I can, a non-executive role with the team, not involved in day-to-day operations (because I don’t want a job 😀), but offering advice, inspiration, friendship anywhere I can. I am beyond fortunate.” Andretti shared this on X.

Given how fragile the situation is with Audi and Volkswagen, there is a possibility that the F1 grid will shrink back to 10 teams. So make sure you keep an eye out for an update on Audi and its future moves regarding their F1 project.