Cadillac recently inked a multi-year deal with Ferrari to use its power units when it joins F1 in 2026. GM announced a new powertrain company that will build Cadillac’s F1 engines in order to become a full works team.

Cadillac's prospective Formula 1 team has announced its plan to build its own engines out of an American base by the end of the decade.

TWG Motorsports, the driving force behind the Andretti-born F1 team set to race under the Cadillac banner in 2026, has joined forces with General Motors to develop the US outfit's future in-house power unit.

General Motors has set up an engine company to turn its planned Cadillac Formula One entry into a full works team by the end of the decade, the carmaker said on Thursday.

General Motors (GM), in partnership with TWG Motorsports, has established a new company, GM Performance Power Units LLC, to position the Cadillac brand as a Formula 1 motorsport competitor. In November, GM and TWG signed an agreement in principle with Formula 1 to add an 11th team under its Cadillac brand.

One of the key reasons Cadillac’s F1 entry bid was accepted was because of their plans to become a works team with their own power unit, rather than just being a customer team. The American team will be powered by Ferrari until the GM power unit is fully developed.

General Motors along with TWG Motorsports is forming a new company named GM Performance Power Units LLC. The primary focus of this new entity is the development