(Bloomberg) -- Audi will partner with Swiss racing team Sauber Group in its bid to join Formula 1 in 2026, part of Volkswagen AG’s efforts to bolster its brand by competing in the popular racing circuit.

The German luxury brand will take a stake in the veteran racing group, with a plan for Audi to supply a Formula 1 powertrain to a vehicle that will be developed and built by Sauber, the pair said Wednesday. While Audi and VW sister brand Porsche have held talks for months to separately enter Formula 1, Porsche’s discussions with Red Bull GmbH have faltered. 

Audi said work to build out its site in Neuburg have started to meet an “ambitious” schedule to start racing by 2026. More than 120 employees are working on the project, it said. 

The carmaker’s decision to partner with Sauber follows more than a year of deliberations that at one point centered on the premium brand teaming up with McLaren Group. Earlier, then-VW Chief Executive Officer Herbert Diess said becoming part of F1 was the most important lever to boost brand value for both Audi and Porsche.

Plans to take part in the sport took shape after the competition’s decision to turn carbon neutral by 2030 while using synthetic fuels from 2026, as VW pursues the industry’s biggest electrification push. The change in technology is a unique opportunity to start competing in the franchise that’s been dominated by Mercedes-Benz AG.

Sauber has about 30 years of car racing experience. Its facilities in Hinwil, Switzerland, include a wind tunnel , where specialists use aerodynamics to hone vehicle design. 

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