It has been confirmed that the American team, which started life as Andretti Global, has had its entry accepted in principle 10 months after it was originally rejected.
“General Motors is a huge global brand and powerhouse in the OEM world and is working with impressive partners,” said FIA president Mohammed Ben Sulayem in a statement issued to Speedcafe.
“I am fully supportive of the efforts made by the FIA, Formula 1, GM and the team to maintain dialogue and work towards this outcome of an agreement in principle to progress this application to bring a GM/Cadillac branded team onto the grid for the 2026 FIA Formula One World Championship.
“All parties, including the FIA, will continue to work together to ensure the process progresses smoothly.”
Much has changed over the past 10 months, both within Liberty Media and Andretti Global, with the project morphing into a more General Motors-focused program headed by Dan Towriss rather than Michael Andretti.
In recent weeks, Greg Maffei has announced he will step down as CEO of Liberty Media with his contract expires the end of the year.
He’s been in the role nearly two decades, though there is no ready replacement and Liberty Media founder John Malone will step in on an interim basis.
Formula 1 itself has also been under increasing pressure from the United States Department of Justice as they investigated the sport’s commercial rights holder over antitrust concerns.
That much has changed in a seemingly short time raises questions over the motivations behind it all.
In January, F1 published a lengthy statement regarded the rejection of the Andretti entry, including a number of stinging lines that seemed personal.
“While the Andretti name carries some recognition for F1 fans, our research indicates that F1 would bring value to the Andretti brand rather than the other way around,” it outlined at the time.
However, a number of other concerns raised then remain true now.
“The most significant way in which a new entrant would bring value is by being competitive, in particular by competing for podiums and race wins,” F1 noted in January.
It also claimed that “a novice constructor in partnership with a new entrant PU supplier would also have a significant challenge to overcome.”
While presented differently, the Cadillac entry is the same project that raised concerns in January.
The only real difference is the branding of the operation, and the prominence of General Motors and Cadillac.
In addition to F1’s stated opposition, rival teams were largely unwelcoming as they viewed the addition of an 11th team as a threat to their own financial interests.
That concern related to the distribution of prize money, with the pool currently split 10 ways.
However, that fails to take into consideration the additional revenue opportunities an 11th team has, with General Motors itself likely to spend heavily on advertising and hospitality.
That additional income is thought likely to offset the reduction in prize money payments in the short term, making it cost neutral to rival teams.
There is also the matter of the antidilution fee.
Currently set at $200 million, it is reportedly set to rise to $600 million under the new Concorde Agreements due to come into force in 2026.
That is a point about which Speedcafe has written about before, where the legitimacy and intent of the fee were drawn into question.
Still, a $600 million up front payment to found a business that, from day one, will be valued at close to $1 billion (and likely more) is hardly a poor investment.
More to follow
