General Motors (GM) has shattered NASCAR’s traditional boundaries, securing a landmark entry into Formula 1 with a $450 million expansion fee. The Detroit automaker, alongside financier Dan Towriss’ TWG Motorsports, will field a Cadillac-branded F1 team, starting in 2026, with plans to debut its own power units by 2029. The move marks GM’s first foray into F1 and positions it alongside giants like Ferrari and Mercedes.
The deal, approved by the FIA this week, follows months of negotiations and a restructured bid after initial rejection. GM’s commitment includes a $150 million North Carolina facility and a delayed engine rollout to refine its hybrid technology, signaling a seismic shift in racing’s global hierarchy.
GM’s $450 Million F1 Entry Shatters NASCAR’s Traditional Boundaries
GM’s path to F1 required navigating fierce resistance. Initially rejected in early 2024 over concerns about competitive viability, the project pivoted from Andretti Global’s backing to a standalone Cadillac entry. The revised bid satisfied F1’s financial demands, a $450 million anti−dilution fee, more than double the 2020 standard of $200 million.
The Cadillac F1 team will run GM engines from 2029 after being approved as an F1 engine supplier#Formula1 pic.twitter.com/uy8rYmiogM
— Motorsport.com (@Motorsport)
“GM and Towriss’ TWG company “will pay an anti-dilution fee of $450M (£358M) to secure the entry,” the BBC reported, citing senior F1 sources.
“This is larger than the $200M anti-dilution dictated by the existing F1 rules, but the contracts between the teams, F1, and the FIA end after 2025 and are being renegotiated for 2026. The fee is expected to go up again in the new deals,” the report added.
The fee reflects soaring team valuations, with even mid−tier outfits worth over $1 billion. TWG Motorsports, led by former Guggenheim executive Dan Towriss, partnered with GM to share costs and leverage racing expertise from sponsors like Gainbridge.
The Cadillac team will debut in 2026 using Ferrari engines, so it is buying time for GM to develop its 1.6-liter turbo hybrid power units.
“With this approval, we will accelerate our efforts to bring a 100% American F1 engine to the grid,” said Russ O’Blenes, head of GM Performance Power Units.
Cadillac’s 2029 Engine Debut Anchors GM’s Global Racing Expansion
GM’s F1 ambitions hinge on its 2029 engine rollout, which will align with revised regulations emphasizing 50% electric power and sustainable fuels. The project will be housed in a new Charlotte-based facility slated to open in 2026, a $150 million investment underscoring GM’s long-term commitment.
FIA president Mohammed Ben Sulayem praised the move as a milestone for diversity and innovation. “Although the process was at times challenging, the progress we see today affirms the journey has been worthwhile,” he said.
“Welcoming GM Performance Power Units LLC. as an approved power unit supplier for the championship starting in 2029 marks another step in the global expansion of Formula 1 and highlights the growing interest from world-class automotive manufacturers like General Motors,” he added.
The delayed engine timeline allows Cadillac to acclimate to F1’s rigors while avoiding rushed tech launches. Early prototypes are already in development, with GM prioritizing reliability over speed. Meanwhile, debates over future engine formats, like a proposed V8, linger, though hybrids remain central to F1’s roadmap.
For GM, the gamble extends beyond prestige. By 2029, its success could redefine American influence in a sport long dominated by European powerhouses and prove that $450 million was just the starting line.