Major F1 factor causing Cadillac entry 'massive headache'

The Formula 1 cost cap has caused a "massive headache" for the new Cadillac F1 entry, halting a potential advantage for the American outfit.

Cadillac will join the pinnacle of motorsport next season as the 11th team on the grid, following approval from both the FIA and the championship.

RacingNews365 understands it has signed its first driver: current Mercedes reserve Valtteri Bottas.

Things are progressing well for F1’s newest squad, which will operate as a Ferrari customer for its first two seasons before becoming a full factory team from 2028, when it will supply its own power units.

However, certain cost cap regulations are preventing the team from sharing information with a close partner. The Cadillac F1 Team falls under the TWG Group, which acquired Andretti Global in November 2024.

In February this year, TWG launched its new motorsport division, TWG Motorsport, which manages Cadillac F1, Andretti's teams in Formula E and IndyCar, as well as other racing programmes.

As a result — with F1’s push toward electrification starting next season — there had been hopes that Cadillac and the Andretti Formula E Team could collaborate in some capacity.

According to Andretti Formula E Team Principal Roger Griffiths, however, that has proven incredibly difficult due to F1's strict cost cap rules on how different teams within an inter-company structure can work together.

"Certainly, in the early days, we had those conversations," Griffiths told RacingNews365 during an interview. "But there's one thing that's causing a massive headache that's kind of preventing all of that, and that's the cost cap. 

"The way the Formula 1 cost cap is administrated, it makes it super difficult to have that joint support, transfer of information, transfer of technology, there needs to be really clear boundaries between the various programmes. 

"And I think that's going to make it very difficult. I mean, it doesn't prevent us from talking, certainly, I've had a number of [conversations]. 

"Ultimately, my boss, Dan Towriss (CEO of TWG Motorsports), is responsible for all of the programmes. So, we talk about how things could work together. We have good relationships. 

"But, I think that the reality is it's going to be super difficult because of the cost cap regulations, it clearly defines how entities can work together within an inter-company arrangement. It's going to be quite tough."