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

GM has an agreement in principle to start in F1 in 2026 with a new team named after its luxury Cadillac brand, partnering with US group TWG Global.

GM says it is forming a specialised engine-building company, called GM Performance Power Units, to build the engine the team will eventually use.

A statement said the company would “put Cadillac on the path to being a ‘full works’ team – building F1 vehicles and power units – by the end of the decade”.

It did not specify an exact year for the debut of the GM F1 engine.

Cadillac will use Ferrari customer engines from its debut next year until its own engine is ready for use.

GM said testing of prototype F1 engine technology had already started in its motorsport technical centre in Charlotte, North Carolina, and in 2026 it would open a dedicated facility for the F1 engine programme nearby.

The chief executive officer of the new company will be Russ O’Blenes, head of GM’s motorsports propulsion and performance team.

Dan Towriss, CEO of TWG Motorsports, said: “We’re delighted to welcome Russ to this pivotal role. His expertise and leadership will be instrumental as we lay the foundation for Cadillac’s F1 journey.

“Together with team principal Graeme Lowdon, they will lead the team in setting new standards of performance and innovation in the sport.”