The deal
Elite open-wheel motor racing series Formula 1 (F1) has accepted a bid from US car giant General Motors (GM) for entry to the competition as its 11th team in 2026.
GM is set to enter F1 in partnership with motorsports ownership group TWG Global and will race under the name of its luxury car brand Cadillac.
The fee involved is reported to be around $450 million, which is more than double the legislated $200 million entry fee, but with the rules set to change soon and the fee expected to rise prior to 2026, it is likely GM has been told to pay extra to meet future rules rather than adhere to current ones.
Why it matters
F1 had seemingly shut the door to further expansion when it rejected Andretti Global’s proposal in January, with the last time the sport had 11 teams being in 2016, after which the Manor Racing constructor folded, with Liberty Media completing its F1 acquisition in 2017.
This resulted in an increase in revenues for teams, meaning there was more of a hesitancy to accept a new team unless it was definitely going to bring more value for the rest of the teams, with the dilution in prize money brought about by an 11th team.
This, however, better conforms to the wishes of Mohammed Ben Sulayem, president of the FIA motor racing governing body, who in the past has expressed his desire for a 12-team grid.
F1 last had a 12-team field in 2012, after which the HRT team was disbanded.
However, GM’s entry also points towards F1’s current preference for more road car manufacturers in the sport.
For 2026, it already has Ferrari, Mercedes, Honda, Audi, and Ford (via Red Bull), while Renault owns Alpine.
It is also important to point out that the US is F1’s biggest target market for growth.
Speaking on GM’s entry, Greg Maffei, chief executive and president of F1 owner Liberty Media, stated: “With Formula 1’s continued growth plans in the US, we have always believed that welcoming an impressive US brand like GM/Cadillac to the grid and GM as a future power unit supplier could bring additional value and interest to the sport.”
While current F1 team Haas is also US-based, it is not a power unit supplier.
Conrad Wiacek, GlobalData Sport lead analyst, commented: “With GM having their place on the F1 grid confirmed for 2026, the future for F1 looks increasingly strong from a manufacturer point of view. With Audi joining next year and GM in 2026, alongside the likes of Renault, Mercedes, Ferrari and Toyota, the F1 grid looks to be well supported financially, which fans will hope leads to better racing and tighter and more competitive championships.
“While some will mourn the loss of independents like Sauber, Jordan and Williams, the costs associated with F1 mean that self-funded teams are likely a thing of the past, with sponsorship not enough to bridge the gap to the larger teams. Liberty Media will be delighted to get one of the giants of the US car industry on board as well, as it looks to capitalize on the growth of F1 in the US in recent years.”
The detail
For the first two seasons of its existence, GM will utilize another constructor’s engines (reportedly Ferrari’s) before a later date, likely 2028, when it will also become a factory team, through which it can then produce its own engines and those for other vehicles.
To enter the competition, GM and TWG will have to pay an “anti-dilution fee”, effectively compensation to be split among the other 10 teams on the grid for the prize money they lose by having an extra competitor split the total prize pot.
