Volkswagen set to pull out of World Rally

Volkswagen is set to withdraw from the World Rally Championship, with an official announcement expected this week

The VW sign of Germany's Volkswagen car company

Volkswagen AG has pleaded guilty to fraud in a US court. (AAP)

Volkswagen is set to pull out of the World Rally Championship at the end of the season, with the decision coming only days after the German manufacturer won a fourth successive title.

Britain's Autocar and Autosport magazines quoted sources as saying the decision was taken at a board meeting in Wolfsburg, with an announcement expected on Wednesday.

Europe's biggest automaker is battling to recover from an emissions scandal that is set to cost it billions of dollars in compensation and vehicle refits.

Autocar reported that the board had pledged to retain the 200 Volkswagen Motorsport employees and could re-deploy them on other programs that might include Skoda's rally efforts.

A spokesman for Volkswagen could not be immediately reached for a comment.

The world rally team has won the drivers' championship for the past four years with France's Sebastien Ogier.

Audi, also part of the Volkswagen group, announced last week that it was pulling out of the World Endurance Championship and Le Mans 24 Hours race to focus on the all-electric Formula E series.

Volkswagen last week reported profits at its core brand had plunged more than a half in the three months through September.


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Source: AAP



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