General Motors secures deal to enter Formula 1 in 2026 with Cadillac brand

General Motors (GM) is set to join Formula 1 in 2026 with a new team named after its Cadillac brand. Partnering with TWG Global, GM has committed to introducing a Cadillac-branded team while planning to develop its own power unit at a later stage. Formula 1 has confirmed that the application process for GM’s entry will proceed.

The introduction of Cadillac to Formula 1 aligns with the sport’s growth ambitions in the United States and is expected to boost interest and value in the championship. GM’s participation will mark a significant addition to the grid, with the brand planning to establish itself as a power unit supplier in the future.

To secure its place on the grid, GM and TWG are set to pay an anti-dilution fee of $450 million, significantly higher than the $200 million outlined in current F1 regulations. This fee, distributed among the ten existing teams, compensates for the dilution of prize money as Formula 1’s revenue will be shared among eleven teams instead of ten.

The new fee structure reflects the renegotiation of contracts between teams, F1, and the FIA, which are set to conclude in 2025. The updated agreements for 2026 are expected to further increase the anti-dilution fee.

While Cadillac plans to build its own engine, the team will initially rely on a customer engine from an existing supplier, with Ferrari emerging as a likely candidate. Ferrari is expected to have a spare supply of engines in 2026 due to its current customer team, Sauber, transitioning into Audi’s official entry with a German-manufactured power unit. Cadillac’s in-house engine is not anticipated to be ready until 2028. This development positions General Motors and its Cadillac brand as prominent contenders in Formula 1’s expanding global landscape.