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.

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.

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.

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