By Christopher Tan, Senior Correspondent

Volkswagen Group may enter Formula One if the cost is 'more manageable'.

Mr Reinhold Carl, managing director of Audi Singapore, said: 'Today, it costs well over a hundred million euros to take part in F1. If the cost is lower, it will be more manageable.'

Speaking to reporters at a launch at the Changi Exhibition Centre, he said the returns from participating in F1 remained vague. In recent times, carmakers which have quit or are quitting F1 include Jaguar, Honda and BMW. There is talk that Toyota and Renault will follow suit.

There have been proposals to cap the F1 budget, which reportedly could be as high as £180 million (S$406 million) a season for each team.

He said if VW Group enters F1, it would probably not field the Lamborghini brand. 'I think it would be Porsche, now that Porsche belongs to the group, or Audi. Or even Volkswagen.'

He said Lamborghini does not need the exposure. Furthermore, the arch rival to Ferrari would not have the financial resources as it has become profitable only in recent years.

VW Group owns 10 brands, including Audi, Porsche, Lamborghini, Bugatti and Bentley. If it fields a team at the world's most-watched motorsport, it would be its maiden attempt.

Meanwhile, Lotus has announced its return to F1 next year.

Mr Carl, however, is excited by Singapore's plan to have a permanent racing circuit by 2011. Audi will bring in its R8 GT3 race car then. The R8 GT3 is a 500bhp-plus track-ready car that customers can buy. Power is transmitted to the rear wheels by a six-speed sequential gearbox.

At the launch, Audi unveiled a close approximation: the 525bhp all-wheel-driven R8 V10, a car with a Ferrari-matching century sprint. It also unveiled the S4 3.0 quattro and S3 Sportback.

The three-car launch marked Audi's busiest year here, with the introduction of no fewer than 10 models and variants. This month, it will cap the year by unveiling the A5 and S5 Cabriolet, canvas-top versions of the stunning A5 and S5. One of the star launches next year will be the R8 Spyder.

Mr Carl said Audi is outperforming the market despite the economic turmoil.

'We are still in the positive, while many others are in the negative,' he noted. 'In Singapore, our sales are up 7 per cent from last year. And despite these difficult times, our dealer is building a new showroom in Alexandra Road.'

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