F1: why Cadillac is using Ferrari power units before General Motors introduces own engines in 2028

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Cadillac has officially confirmed that they will use Ferrari engines for the first two seasons of their Formula 1 venture, set to begin in 2026. This move comes as part of General Motors' strategic entry into the sport, after taking over the unsuccessful Andretti bid and securing an agreement to bring Cadillac onto the grid.

The American automaker will mark its return to Formula 1 as the 11th team, the first new addition in a decade, with ambitious plans for their future in the sport. Cadillac is already laying the groundwork off the track, operating out of Andretti's Silverstone base, and preparing to introduce their own power unit by 2028.

In the interim, Cadillac has negotiated a deal with Ferrari to supply them with engines in both 2026 and 2027, before transitioning into a full-fledged works team. Initially, Ferrari referred to the new team as Andretti Formula Racing, a designation that was soon revised after General Motors decided to drop the Andretti name entirely. Formula One Management is keen on branding the team solely as Cadillac, as it fits with the sport’s broader commercial strategy.

Cadillac is eager to start profiting from Formula 1's lucrative revenue streams as soon as possible, instead of waiting until 2028. By entering the sport earlier, Cadillac not only aims to strengthen their presence in the highly competitive F1 market but also to leverage the growing popularity of the sport, especially in the United States, for financial gain. The team's quick entry is seen as an opportunity to secure commercial and sporting value before becoming a fully integrated factory team.

As the 11th team on the grid, Cadillac will face the challenge of proving their worth, adding both financial and competitive value to the sport. This will ensure that the other 10 existing teams don't lose their share of the revenue pool. In the meantime, their deal with Ferrari for engine supply is a crucial step toward entering the sport swiftly and beginning to generate profits. According to journalist Chris Medland, Cadillac's choice to partner with Ferrari is a strategic move to enter F1 'ASAP' and start earning before their full-fledged factory team debut:

"Because the sooner GM is in F1, the sooner it can profit from the revenues the sport offers. It will take a number of years to turn a profit after setting the team up, but right now F1's in a strong place in the U.S. — and globally — and so they want to be part of it ASAP. You can also learn a lot from those first few years in terms of car design and development, to have more experience and data to lean on come 2028." – Chris Medland pointed out.

The question of who will drive for Cadillac in 2026 is already generating significant speculation, especially with the arrival of the 11th team on the Formula 1 grid. With two additional seats becoming available, all eyes are on the potential candidates who could form the new team's driver lineup.

Mario Andretti, the team's representative and a key figure behind Cadillac's entry, has expressed a preference for pairing an American driver with an experienced teammate to bring both familiarity and skill to the team. Colton Herta is widely considered the frontrunner for the American driver spot. However, F1 analyst Gary Anderson has raised concerns about Herta's consistency, pointing out that the 24-year-old IndyCar driver has made several mistakes in his career that could hinder his ability to succeed in Formula 1. Additionally, Herta faces the challenge of not currently possessing the necessary superlicense points to compete in F1, further complicating the situation.

When it comes to experienced drivers, there are several options for Cadillac to consider. However, one name that seems unlikely to join the team is Yuki Tsunoda. According to Guenther Steiner, team principal of AlphaTauri, Yuki Tsunoda has his sights set on securing the second seat at Red Bull Racing alongside Max Verstappen, making him unlikely to switch to Cadillac in 2026.

Another potential candidate for Cadillac's lineup is Sergio Perez, who could be available if Red Bull decides to part ways with the Mexican driver. Perez, a six-time race winner, would bring a wealth of experience to the team. Beyond his on-track abilities, Perez would also offer significant marketability, especially given his immense popularity in his home country of Mexico. His presence in the team could boost Cadillac's visibility and appeal, not just in terms of performance, but also in tapping into the sizable Mexican fanbase, further elevating the team's profile in F1.

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