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Cadillac could be facing a $5 billion impact prior to their F1 debut following the tariffs levied in the US, General Motors president Mark Reuss expressed earlier. However, he mentioned that this wouldn't have a major impact on their F1 entry.
Cadillac was earlier given the clearance by Formula One Management to join the grid as an eleventh team in the 2026 season. The American brand will be powered by Ferrari until GM's engines are manufactured and approved in the following seasons. But there are other obstacles the team could face as they prepare to join the grid.
Shortly after Donald Trump was sworn in as the 47th President of the United States earlier this year, he levied 25% tariffs on foreign vehicle imports. The automobile industry is expected to face certain challenges, considering brands like General Motors also have factories outside the country.
"These are long-term footprints that we have that are very old in some cases, that have been there a long time, and so we’re working to bring as much as we can into the United States and avoid the tariffs, but not at all costs and it doesn’t happen overnight. There’s no light switch that says: ‘oh, all of a sudden we’re tariff-free,'" Mark Reuss explained (via PlanetF1).
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Despite the costs General Motors could incur, Reuss further explained that it wouldn't impact the Cadillac Formula 1 project.
"You probably would have seen over the last few days, we did earnings in the early part of the week, and then we came back and did the earnings review and guidance, and so in that second one, there’s about $5 billion of impact for us, but it’s not going to affect this project."
General Motors, which owns brands like Cadillac and Chevrolet, had earlier predicted a profit projection between $11.2 billion and $12.5 billion; however, that has taken a steep fall between $8.2 to and $10.1 billion because of the tariffs. The brand is now considering cost-cutting options to extract the maximum profits throughout the year.
Sebastian Vettel backs Mick Schumacher to return to F1 with Cadillac
Schumacher debuted in F1 with Haas in the 2021 season and was in the seat for two years before the team decided not to renew his contract for 2023. He then joined Mercedes as their reserve driver, a role which he's no longer serving.
He hasn't taken part in a Formula 1 Grand Prix since the end of the 2022 season, but is currently racing with Alpine in the World Endurance Championship and recently clinched consecutive podiums.
Former F1 driver Sebastian Vettel, who was popularly known for guiding Mick Schumacher early in his career, recently tipped him off to return to the grid with Cadillac in the 2026 season.
"I wish him the best. We are obviously in contact, and I also heard how things ended for him in Formula 1. I’m keeping my fingers crossed that he gets another chance, because I believe he can absolutely keep up with the others," Vettel told Sport.de.
"He is much more mature. And I think he’s doing a very good job at Alpine in the World Endurance Championship. It would be nice if he gets a second chance in the Cadillac," he added.
So far, there has been no disclosure from Cadillac regarding the drivers they would sign, however, it was expected that they might hunt American talent.
