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.

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.

Becoming a full-bred Formula 1 works team with its own car and engines would put Cadillac on the same level as Ferrari and Mercedes-AMG.

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.

TWG Motorsports and General Motors announced the formation of GM Performance Power Units LLC, a new company dedicated to the production of F1 power units. The stated goal for the new company is to put Cadillac on the path towards becoming a works operation 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.

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.

Cadillac F1 is already preparing for a full-works entry by establishing a new power unit company headed by industry veteran Russ O'Blenes.

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

The new venture will produce Cadillac’s in-house power unit for F1 beyond its deal with current supplier Ferrari