US car company General Motors sets up a new engine company as it gears up for its prospective entry into Formula 1.

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.

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 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