Financial disagreements now make Audi-McLaren F1 deal unlikely, claims report

A deal between Audi and McLaren that would give the German automaker a path to F1 now looks unlikely, according to a source close to the project.

VW Group CEO Herbert Diess announced earlier this week that Audi and Porsche would enter Formula 1. Porsche is aiming for a long-term partnership with Red Bull, and Audi looked likely to succeed in its bids to buy McLaren.

But rumors earlier in the year suggested that Audi had already been turned down at least once by McLaren for not bringing enough cash to the table, and Reuters reports that the same disagreements over money are preventing final talks from reaching an agreement.

“Price expectations are too far off,” said a person familiar with the talks. Reuters. The source claimed the project was not entirely dead, but suggested momentum was barely detectable, describing Audi’s prospects for success as “now close to zero”.

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There’s no indication of how much money McLaren needs to pocket for the collaboration to get the green light from bosses at the Woking firm, but we reported in April that Audi had upped its bid to take a stake in McLaren’s F1 arm. starting at 450 million euros ($497 million). ) to 650 million euros ($719 million).

Herbert Diess admitted that VW Group’s proposals for Audi and Porsche to enter F1 had not received universal approval at board level, but the plan was finally given the green light after detailed analysis suggested that VW would make more money being part of F1. circus than not.

Both Porsche and Audi have collected large amounts of motorsport trophies over the years by participating in sports car races and rallies. But Porsche only briefly competed in F1 in the late 1950s and early 1960s, and with very modest success. And although the Audi company (part of the Auto Union) was more successful, you have to go back to the 1930s to find evidence of this success.

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