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's F1 team will have its own chassis and power unit, with the latter to be sourced from North Carolina.

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.

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.

Russ O'Blenes will head the newly formed GM Precision Power Units LLC, a company dedicated to producing powertrains for the Cadillac F1 team.

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’s planned entry into Formula 1 adds further value to Audi’s own project that begins in full in 2026, according to its CEO Gernot Döllner. Audi is taking over the Sauber team

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

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.

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