FILE PHOTO: The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, U.S., March 16, 2021. REUTERS/Rebecca Cook/File Photo
(Reuters) -General Motors plans to enter Formula One with its Cadillac brand in 2026 after announcing on Monday an agreement in principle with the Liberty Media-owned sport.
Hailing a landmark move to become the 11th team on the starting grid, the carmaker said it had also registered with the governing FIA as a power unit manufacturer to become a full works outfit by the end of the decade.
They will be the first new team since U.S.-owned Haas debuted in 2016 and GM the sixth engine maker after Audi, Ferrari, Honda, Mercedes and Red Bull/Ford.
GM will partner with TWG Global and Mario Andretti -- the last U.S. world champion in 1978 -- will serve as a director on the team's board.
"My first love was Formula One and now, 70 years later, the F1 paddock is still my happy place," said Andretti in a Cadillac statement.
"To still be involved at this stage of my life; I have to pinch myself to make sure I’m not dreaming."
General Motors bosses were at the Las Vegas Grand Prix last weekend to put the seal on a project that was rejected by Formula One last January despite FIA approval.
"With Formula One’s continued growth plans in the U.S., we have always believed that welcoming an impressive U.S. brand like GM/Cadillac to the grid and GM as a future power unit supplier could bring additional value and interest to the sport," said Liberty Media's outgoing CEO Greg Maffei.
"We credit the leadership of General Motors and their partners with significant progress in their readiness to enter Formula One.
"We are excited to move forward with the application process for the GM/Cadillac team to enter the Championship in 2026."
FIA SUPPORT
FIA President Mohammed Ben Sulayem, who was an early backer of an Andretti bid and has continued to push behind the scenes to get a deal over the line, expressed full support for the latest development.
"All parties, including the FIA, will continue to work together to ensure the process progresses smoothly," he said in a statement.
An investigation by the U.S. House of Representatives Judiciary Committee into possible 'anticompetitive conduct' also concentrated minds and changed the dialogue, sources said.
Formula One had said in January it doubted the original Andretti bid would be competitive or add value but kept a door open for 2028 when partner General Motors could provide an engine.
That bid was presented as an Andretti Cadillac entry, with Andretti Global led by Mario's son Michael -- a former F1 racer and 1991 CART champion who was seen by some as a more confrontational figure.
Michael Andretti has since taken a step back from his day-to-day operational role and handed over to Dan Towriss, the CEO of TWG Global which owns and operates Andretti Global.
The BBC separately quoted senior sources as saying GM and TWG will pay an anti-dilution fee, split between the 10 existing teams, of $450m to secure the entry.
The current fee is 200 million, but new rules will apply from 2026.
GM will also need to buy in an engine for 2026 and 2027, with Ferrari seen as a leading candidate given that they will have a spare supply when Sauber become Audi.
"This is a global stage for us to demonstrate GM’s engineering expertise and technology leadership at an entirely new level," said GM president Mark Reuss.
Cadillac has already assembled a team to work on aerodynamics, chassis and component development, software, and vehicle dynamics simulation.
Andretti also has a base at Silverstone in England with a number of personnel employed, including former F1 chief technical officer Pat Symonds as executive engineering consultant
(Additional reporting by Tommy Lund in Gdansk; Editing by Alex Richardson and Ken Ferris and Pritha Sarkar)
