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Volkswagen Group Conducting Feasibility Study Of Future Entry Into Formula 1

The Volkswagen Group, the world's "second biggest car maker, is conducting a feasibility study into a potential Formula 1 entry," according to Andrew Benson of the BBC. Sources said that the review is being conducted by former Ferrari Team Principal Stefano Domenicali, who was hired by VW's Audi brand "earlier this year." Its interest is "being piqued by the global marketing success achieved by rivals and new F1 champions Mercedes." But any entry "would depend on management changes at VW or F1." VW Group Supervisory Board Head Ferdinand Piech and F1 CEO Bernie Ecclestone have "long had a difficult relationship." VW was on the working group of car manufacturers that "decided on the new turbo hybrid engine rules introduced into F1 this season, but decided against entering at that time -- and, publicly, has not changed its stance since." Sources, however said that "some senior board members now believe F1 would be a more effective global promotional tool" than its existing motorsport programs. The global advertising value of Mercedes' TV appearances during its F1 campaign in '14 was $2.8B. Experts believe the "equivalent value for VAG" of their sportscar and touring car programs was about $30M (BBC, 12/4).

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