Is Ferrari's Partnership with Cadillac in F1 Racing a Game-Changer?

Ferrari announced on Tuesday that it will provide engines and gearboxes to a new Cadillac Formula One team under a multi-year agreement starting in 2026, pending final entry approval. This supply opportunity arises as Sauber transitions to the Audi factory team, marking the beginning of a new engine era in the sport. Ferrari mentioned that the agreement with Andretti Formula Racing LLC depends on receiving written confirmation from the governing body FIA and Formula One that the 2026 entry has been accepted and approved.

Last month, the Liberty Media-owned sport revealed a preliminary agreement for the General Motors-supported team to join as an 11th entry. Additionally, General Motors has registered with the FIA as a power unit manufacturer, aiming to become a full works team by the decade's end.

According to F1 sources, GM and its partners TWG Global have consented to pay a $450 million anti-dilution fee, which will be divided among the 10 current teams, to secure their entry.

Ferrari supplies engines to both their own works team and the U.S.-owned Haas team.