Audi and McLaren F1 deal looking unlikely

A deal for Audi to take over McLaren's Formula One operations has stalled out, according to reports.

Audi had planned to heavily invest in the McLaren Formula One team off the back of the Volkswagen Group's announcement of both Audi and Porsche joining the championship from 2026.

A deal between Audi and McLaren was understood to be all but signed – although as reported by Automotive News Europe, insiders close to the project have claimed "price expectations are too far apart", with Ingolstadt believed to be planning an offer of €500 million (AU$742m) for Woking's F1 team and road car operation.

McLaren team principal Zak Brown denied there were any plans to sell to Audi, telling Motorsport.com the team would remain under the ownership of shareholders.

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McLaren team principal Zak Brown

"Our shareholders are very committed to McLaren," said Brown.

"We did have conversations with Audi, and we're not for sale. We're very committed to our future and we're doing really well on the track.

"Shareholders are making substantial investments to give our team the resources we need to get back to the front, and commercially we're doing really well. Morale in the team is really good. We don't have any interest in selling the racing team."

"We're McLaren F1. That's what we're going to remain, and we're going to remain owning the racing team.

"Our terms for any partnership would be we retain ownership of the racing team. And if anyone wants to have a conversation that is different to that, then there's no conversation to be had."

Talks between Audi and the Ferrari-powered Alfa Romeo/Sauber team as well as Williams Racing are reportedly ongoing, the latter of which shares tenuous history with the Volkwagen Group through team principal and CEO Jost Capito, former head of VW Motorsport.

Meanwhile, Porsche's ambitions to join the F1 paddock remain on track, as a deal with Red Bull Racing to become the reigning world champion's engine supplier is set to be announced this year.

2026 is the most likely year for Porsche and Audi to join Formula One as a new generation of engine and power unit is set to be introduced, with both manufacturers reportedly undertaking development work already.