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Rejection to Redemption: How Cadillac Secured an Entry Bid in Formula 1 in the Wake of Andretti’s Failure

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Opening the Grid: How New Teams Join Formula 1


Throughout its storied history, Formula 1 (“F1”) has seen over 100 teams come and go. At its peak, 39 cars raced across 21 teams over the course of the 1989 season.[2] Currently, F1 has adopted a balanced structure of 10 teams, with each team employing two drivers.[3] While this has been the status quo, the most recent example of an entirely new team joining the grid occurred prior to the 2010 season.[4] During this transition period, F1 reviewed 15 applications where Campos Meta (later rebranded as “Hispania Racing”), Manor Grand Prix (later rebranded “Virgin Racing”), and USF1 all had their entry bids accepted by F1’s governing body, the Fédération Internationale de l'Automobile (“FIA”).[5] Inevitably, none of these new entries proved to be completive – with USF1 dissolving before the season even began – leaving the FIA and Formula One Management (“FOM”) wary to accept new entries in the future.[6]


Following the popularity of Netflix’s “Drive to Survive” Docuseries, F1 has seen a resurgence in popularity globally and especially in America. Accordingly, American motorsports contingents have been waiting for the green light, as the FIA stated it was prepared review new applications for the 2026 and 2027 season. Ultimately, the current teams have been the most vocal against new entries. At its core, F1 is driven by financial revenue. Under F1’s current regulations, 50% of profits for any given season will be split amongst the teams proportional to their finishing position.[7] Accordingly, newer entries results in less revenues of the total earnings allocated to each constructor at the end of each year. The most prominent applications have centered around two American bids – Cadillac Formula 1 and Andretti– one finding success and the other stalling on the grid.


Heritage v. F1’s High Standards


The Andretti name is one that holds credence throughout all corners of the racing world. Andretti’s history began in the 1950s when Mario Andretti and his twin Aldo began racing in the United States. Mario went on to complete one of the most successful racing careers of all time, taking home the 1978 F1 World Championship and four IndyCar National Championships.[8] The Andretti brand transitioned from racer to team in the early 2000s under Mario’s son, Michael, rising to become one of the most completive IndyCar and Formula E teams currently on the grid. While they remain a staple within American motorsports, F1 remains the proverbial “white whale” Andretti has always sought to break into team-side. Andretti seized at the opportunity to submit its proposal to join the grid for the 2025 or 2026 season but soon was denied by FOM.[9]


The FOM’s reasoning for its denial of Andretti’s 2025 entry bid centered around overall doubts they could be competitive in their early seasons. Specifically, FOM reasoned:


“We do not believe that there is a basis for any new applicant to be admitted in 2025 given that this would involve a novice entrant building two completely different cars in its first two years of existence. The fact that the applicant proposes to do so gives us reason to question their understanding of the scope of the challenge involved.


While a 2026 entry would not face this specific issue, it is nevertheless the case that Formula One, as the pinnacle of world motorsport, represents a unique technical challenge to constructors of a nature that the applicant has not faced in any other formula or discipline in which it has previously competed, and it proposes to do so with a dependency on a compulsory [power unit (PU)] supply in the initial years of its participation.


On this basis, we do not believe that the applicant would be a competitive participant.”[10]


While completely new teams joining the grid is not inherently unheard of, the few that have often struggle to be competitive right out of the pits.[11] Beyond history, the FOM heavily focused on the power unit aspect of Andretti’s bid throughout its denial. While each team on the grid is required to construct their own car, many teams do not produce their own power units and, as a result, become customers of other teams. Currently, only four teams on the grid produce their own power unit (Mercedes, Ferrari, Alpine, and Redbull/Honda), while the other six remain customers.[12] However, Andretti’s situation was unique due to its strong relationship with General Motors (“GM”) and the Cadillac brand.


As the FIA and FOM reasoned, Andretti’s bid would have been contingent on them securing a contract with one of the four power unit producing teams, knowing they will transition to the GM engine only three years later, raising concerns around unfair advantage from insider knowledge on intellectual property.[13] Pushing back against the FOM’s concerns, Andretti emphasized a more obscure mechanism imbedded within the F1 regulations which states where a new team joining the grid does not produce its own engine, the engine manufacturer with the least customers is obliged to secure a deal.[14] Ultimately, the FOM believed any “compulsory” engine deal Andretti might have secured as well as the difficulties with starting a new team would result in a team that could not live up to the competitive and technical standards F1 demands. Based on the foregoing, FOM concluded “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.”[15]


Cadillac Gets the Green Light  


As F1 opened its doors, Andretti was not the only American company to show interest. Cadillac pledged, in conjunction with GM, to produce their own power unit with the hopes of joining the grid for the 2028 season.[16] Just prior to the start of the 2025 season, F1 and FOM announced that they had accepted and approved Cadillac’s entry bid.[17] While Andretti’s bid was tangentially linked to GM, F1’s concerns centered on the notion that Andretti would have to rely on a “compulsory” engine deal with an existing team.[18] What swayed F1 and FOM the second time around was twofold: 1) GM fully committed to becoming an independent full works organization producing its own engine by 2028, and 2) Cadillac had already secured a deal with Ferrari to provide them with a power unit and gearboxes upon their entry in 2026 alleviating concerns over competitiveness FOM raised in their denial of Andretti’s bid.[19] Regardless of the fact that Cadillac will join the team as a customer, F1 and FOM felt Cadillac and GM’s long term commitment to fully producing their own engines and factory-based international investments demonstrated an ambition on par with F1’s technological innovations as they transition to a new set of regulations in 2026.[20] Whether F1’s competitiveness concerns were truly warranted or not, FIA President Mohammed Ben Sulayem’s comments regarding Cadillac’s entry were a complete 180 compared to his previous statements regarding Andretti’s bid mere months earlier:


“Today marks a transformative moment and I am proud to lead the Federation in this progressive step for the championship. The FIA Formula One Championship’s expansion to an 11th team in 2026 is a milestone. GM/Cadillac brings fresh energy, aligning with the new FIA 2026 regulations and ushering in an exciting era for the sport.


The Cadillac Formula 1 Team’s presence in the paddock will inspire future competitors and fans. Their entry strengthens our mission to push motorsport’s boundaries at the highest level.”[21]


Cadillac’s decision to join the grid in 2026, as opposed to 2025 like Andretti planned, provided a broader window to present an integrated bid and fully outline the financial backing coming from American motorsport giants alleviating F1’s previous concerns. The plan may not have been as streamlined as the parties originally hoped; however, the Cadillac + GM contingent were successful to produce an operation that on paper fully complied with F1’s future-oriented innovative drive where other bids have continually failed.


Over the current season’s summer break, Cadillac announced its driver lineup for 2026, settling on two F1 veterans and proven race winners in Valtteri Bottas and Sergio “Checo” Perez.[22] While many names were thrown out as to potential hires (Germany’s Mick Schumacher, America’s Colton Herta, and Spain’s Álex Palou), Cadillac’s selection in Perez and Bottas is a clear indication for their early strategy: experience over potential.[23] With 26 combined race wins between the pairing, Team Principal Graeme Lowdon stated: “[Bottas and Perez] have seen it all and they know what it takes to succeed in Formula 1. But more importantly, they understand what it takes to help build a team. Their leadership, feedback, race-hardened instincts and of course their speed will be invaluable as we bring this team to life.”[24] As F1 continues to build its brand within the United States, Cadillac’s entry will be a critical inflection point as the FIA continues to navigate the sport’s newfound popularity among American fans and automative juggernaut’s.

 

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Christopher Costa (deputy editor-in-chief) is a 2L from Suffern, New York. He graduated from Cornell University with a degree in Industrial and Labor Relations. At Villanova Chris is a member of the Sports Law Concentration, on the Baseball Arbitration Team, and Co-Philanthropy Chair of the Villanova Sports Law Society. Chris is a lifelong Giants and Yankee fan as well as a die-hard McLaren F1 fan. Following graduation he hopes to work as either an in house counsel within the NFL, MLB, or any motorsport series.


References:


[3] F1 Authors. Everything you need to know about F1 – Drivers, Teams, Cars, Circuits, and more. (2025). https://www.formula1.com/en/latest/article/drivers-teams-cars-circuits-and-more-everything-you-need-to-know-about.7iQfL3Rivf1comzdqV5jwc.

[4] Wikipedia Authors. Formula One World Championship. (Aug, 9. 2025) https://en.wikipedia.org/wiki/2010_Formula_One_World_Championship

[5] Id.

[6] Edd Straw. Brutal failure of F1’s last influx of new teams is a warning. (Feb, 2. 2023). https://www.the-race.com/formula-1/brutal-failure-of-f1s-last-influx-of-new-teams-is-a-warning/

[8] International Motorsport Hall of Fame. Mario Andretti. (2021). https://www.motorsportshalloffame.com/inductees/mario-andretti/

[9] Laurence Edmondson. Why F1Rejected Andretti Bid to join the grid for 2025, 2026. (Jan, 31. 2024) https://www.espn.com/racing/story/_/id/39430557/why-f1-rejected-andretti-bid-join-grid-2025-2026

[10] Id.

[11] Edd Straw. Brutal failure of F1’s last influx of new teams is a warning. (Feb, 2. 2023). https://www.the-race.com/formula-1/brutal-failure-of-f1s-last-influx-of-new-teams-is-a-warning/

[12] Laurence Edmondson. Why F1Rejected Andretti Bid to join the grid for 2025, 2026. (Jan, 31. 2024) https://www.espn.com/racing/story/_/id/39430557/why-f1-rejected-andretti-bid-join-grid-2025-2026

[13] Id.

[14] Id.

[15] Id.

[16] Phillip Horton. Why Formula 1 Said No To Michael Andretti’s Bid To Join F1 Grid. (Jan, 31. 2024) https://www.autoweek.com/racing/formula-1/a46596274/why-formula-1-said-no-michael-andretti/

[17] F1 Authors. Cadillac Receive Final Approval To Join Formula 1 Grid in 2026 as 11th Team. (Mar, 7. 2025). https://www.formula1.com/en/latest/article/cadillac-receive-final-approval-to-join-formula-1-grid-in-2026-as-11th-team.1saxQLtLPc7k9TFl4eNrQN

[18] Andrew Benson. Cadillac Wins Formal Approval for F1 Entry in 2026. (Mar, 7. 2025). https://www.bbc.com/sport/formula1/articles/c5ym58723v9o

[19] F1 Authors. Ferrari Agree to Supply General Motors F1 Project With Power Units and Gearboxes. (Dec, 11. 2024). https://www.formula1.com/en/latest/article/ferrari-agree-to-supply-general-motors-f1-project-with-power-units-and.5iJ8zSH3IEfakRY5XXt8GM

[20] F1 Authors. Cadillac Receive Final Approval To Join Formula 1 Grid in 2026 as 11th Team. (Mar, 7. 2025). https://www.formula1.com/en/latest/article/cadillac-receive-final-approval-to-join-formula-1-grid-in-2026-as-11th-team.1saxQLtLPc7k9TFl4eNrQN

[21] Id.

[22] Lawrence Baretto. Perez and Bottas to Make F1 Return in 2026 With Cadillac. (Aug, 26. 2025).  https://www.formula1.com/en/latest/article/perez-and-bottas-to-make-f1-returns-in-2026-with-cadillac.6sqKNbUEoFjveym9YfGkxQ

[23] Id.

[24] Id.


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