General Motors agrees deal to enter F1 in 2026

General Motors (GM) has reached an agreement in principle to enter Formula 1 in 2026 under its Cadillac brand. This marks a significant development as GM, in partnership with the US group TWG Global, is set to form a new team. The team will bear the Cadillac name, and GM plans to develop its own engine at a later date.

Formula 1 officials have confirmed that the application process for GM’s entry will proceed, with plans for the new team to compete in the 2026 season. Greg Maffei, the CEO of F1’s commercial rights holder Liberty Media, expressed excitement over the entry, highlighting that GM’s involvement could bring increased value to the sport, especially with Formula 1’s expanding presence in the United States. Maffei praised the leadership of GM and their partners for making significant progress toward their entry into the championship.

F1’s governing body, the FIA, also voiced strong support. FIA President Mohammed Ben Sulayem described GM as a “global powerhouse” in the automotive industry and expressed confidence that all parties—F1, GM, and the FIA—would work together to ensure a smooth transition for Cadillac’s entry into the series in 2026.

To secure its place on the grid, GM and TWG will pay an anti-dilution fee of $450 million (£358 million), which will be distributed among the existing 10 teams to compensate for their expected reduction in prize money. The fee is higher than the previous $200 million fee stipulated by existing F1 rules due to the renegotiation of contracts for the 2026 season. The contracts, set to end after 2025, will likely raise this fee further, as the income from F1 will now be divided between 11 teams instead of 10.

Since Cadillac’s own engine is not expected to be ready until 2028, the new team will initially use a customer engine from an existing supplier. Talks are underway with Ferrari being the most likely provider, as the Italian team will have a spare engine supply beginning in 2026, following their customer team Sauber’s transition into Audi’s official entry. Audi is building its own engine, so Ferrari could supply the Cadillac team until it is ready to manufacture its own engines.

This Cadillac entry is a revised version of the Andretti bid that was rejected earlier by F1. Initially, the Andretti bid, which also included Cadillac as a partner, was turned down due to concerns that it would not add significant value to the sport. However, the new approach, with GM entering as a team owner, is viewed more favorably.

The Cadillac team will be a joint venture between GM and TWG, with key investors including Dan Towriss, the owner of the Andretti Global team, and Mark Walter of TWG. Towriss was seen at the Las Vegas Grand Prix working on the new project. Notably, Michael Andretti, co-founder of the Andretti team, is no longer involved in the project after stepping down in September. His departure was due to the perception that his confrontational approach had made securing an entry difficult. However, his father, Mario Andretti, a former F1 world champion, will serve as an advisor in a non-executive capacity.

With GM’s entry, the number of car manufacturers producing engines for F1 will increase to six, alongside Mercedes, Ferrari, Ford, Honda, and Audi. The new engine regulations for 2026, which emphasize hybrid power units, have been a key factor in attracting these manufacturers back to the sport. Ford, Audi, and GM’s participation will bring fresh competition to F1, with Ford teaming up with Red Bull for an engine partnership. Honda, which had previously announced plans to leave F1, reversed its decision in response to the new hybrid regulations and will continue to supply engines to Red Bull and Aston Martin.

Renault’s sports car brand Alpine will stay in F1, but will switch to using customer engines from Mercedes starting in 2026, as it moves away from developing its own engine.

The news of Cadillac’s entry has been met with excitement from F1 figures. McLaren Racing CEO Zak Brown praised Cadillac’s history and expertise in automotive innovation, anticipating that the new team would bring an exciting new dimension to the sport. As the 2026 season approaches, the addition of Cadillac to the grid will enhance the competition and further strengthen F1’s global appeal.