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.

General Motors announced Thursday morning the creation of a new business: GM Performance Power Units LLC. The new entity is tasked with helping the new Cadillac Formula 1 outfit become a “full works” team by the turn of the decade.

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'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 planned entry into Formula 1 adds further value to Audi’s own project that begins in full in 2026, according to its CEO Gernot Döllner. Audi is taking over the Sauber team

The new venture will produce Cadillac’s in-house power unit for F1 beyond its deal with current supplier Ferrari