GM Welcomed with Open Arms but Andretti Still Shaded

November 22, 2023Ramon Jones
Formula 1

General Motors announced that they were formally registered with the FIA to become a power unit supplier in F1 for 2028. The announcement came after GM and Andretti publicly have committed to one another for their F1 bid. However, Formula One’s commercial rights holder, Liberty Media is still considering the application. No decision has been made on the commercial bargaining agreement that all 11 teams would share in F1.

The are mixed feelings on the introduction of an 11th team. The most vocal opponent of Andretti’s entry into F1 is Toto Wolff, Team Principal at Mercedes. Wolff offered his remarks on Andretti’s entry into F1, “Well, GM is one of the big players, no doubt,” Wolff said. “And I guess if they say they want to join the sport in ‘28, they’re serious about it, and it’s a good commitment. But, you know, we need to see whether the Commercial Rights Holder deems this to be a good entry or not.

“For many teams (adding an 11th team) is big dilution that can make the difference between, you know, big losses or less losses. And I haven’t changed my opinion on that. We haven’t seen any data, just to say it’s going be awesome. Where’s the case? What are the numbers? How much can we gain in popularity? What’s the name worth? How much more can the sport be attractive? What are the facts? And if those facts are positive, I have no doubt that F1 will consider that in that way.”

Zak Brown Has a More Positive Outlook

Zak Brown, McLaren team principal “A potential entry has to be the right team with the right resources,” he told “Let’s assume for a moment it is. If they pay the right franchise fee – which is not US$200 million, let’s say it’s US$700 million – then I get US$70 million.

The dilution of an 11th team is about US$10 million a year. So, if I get US$70 [million], it will be covering me for seven years. Then if it costs US$700 [million] just to enter, it’s created US$700 million more in franchise value. So, whatever I’m worth today, pick a number… US$2 billion, now I’m worth US$2.7 billion.”

Regardless the decision is now out of the hands of the teams. With GM committing to an Andretti partnership. It is hard to believe that one of the most well funded automotive brands in the woudn’t have the funding to make the move happen. However, we still do not have a verdict. We will report back as this story develops. Andretti is looking to enter F1 for the 2025 season.