The Volkswagen group is not going to enter formula one.

That is the conclusion on Tuesday of a report in the Frankfurter Allgemeine Zeitung newspaper.

Last month, following speculation the German giant was considering entering F1 with Audi or Porsche branding, it emerged that VW would discuss the possibility during a meeting in early November.

The FAZ newspaper, citing definite but unnamed sources, now says Volkswagen chairman Ferdinand Piech has decided the marque will not be entering F1.

Interestingly, the report said Red Bull and McLaren had expressed their interest in being supplied engines by Volkswagen.

FAZ said VW is still interested in entering the world rally championship, as well as operating two programmes – with Porsche and Audi – at Le Mans.

Mercedes’ Norbert Haug and Force India on Friday played down reports about movement in the customer engine market for 2011.
Citing unnamed sources, a report in the Bayern newspaper TZ said Red Bull could be powered by Mercedes next year, with Force India switching to Renault.

Force India denied the story, insisting it has a valid contract with Mercedes until the end of 2012.

Also contrary to the report, the Silverstone based team said its payments to Mercedes are up to date “and always will be”.

Mercedes also responded to the report, with motor sport vice president Haug insisting the marque is also contractually bound.

“We would have worked with Red Bull already this year,” he told German television Sky.

“However, we have an exclusive contract with McLaren. Understandably, McLaren has put in the veto,” explained Haug.

“We have to respect contracts, of course. That is the situation.

“I would be very happy to see Mark Webber, who was formerly with us (Mercedes), and of course Sebastian Vettel, drive with our engines.

“But at the moment that is not the case,” said Haug.