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.

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 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.

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