Perez $100M Cadillac Deal Misses the Real Prize: 2029 Engine

Nobody outside TWG, General Motors and a few lawyers can say whether a slice of Cadillac's Formula 1 team is actually being shopped.

Nothing in the team's own newsroom suggests it.

The latest posts are a Mexico City race report, an energy partnership and Sergio Pérez's contract extension.

I can't find a confirmation of any sale process from TWG, GM or the team, so treat the chatter as unconfirmed.

It is still a useful prompt, because it forces a blunt question: if you were buying into this team, what would you actually be buying?

My argument is that it isn't the thing on track.

It's an engine program that doesn't race until 2029.

WHAT A BUYER WOULD SEE ON THE TIMING SCREENS

After 19 rounds, Formula 1's official standings have Cadillac without a point.

Valtteri Bottas is 23rd in the drivers' table and Pérez 24th.

In Mexico City on November 1, Pérez climbed from 20th on the grid to 17th at the flag, while Bottas retired on lap 46 after an incident the team says it will investigate.

The team's own report blamed equipment problems in both pit stops.

Team Principal Marcin Budkowski said they "cost both drivers time and positions on track."

Budkowski has been in the job since August 12, when the team announced he would replace Graeme Lowdon.

Dan Towriss called the move "another important step in the continued evolution" of the team.

I took a harder look at that handover when it happened.

The short version: a first-season team with no points and a new boss is not being valued on results.

Any buyer is paying for the grid slot, the factories in Silverstone, the Indianapolis area and Charlotte, and what comes next.

THE ASSET SITS NEXT TO THE TEAM, NOT INSIDE IT

Here's what comes next.

Cadillac runs Ferrari power units and gearboxes, a deal announced on December 11, 2024.

That arrangement runs only until GM's own engine is ready.

In April 2025 the FIA approved GM Performance Power Units LLC, a company formed by TWG Motorsports and GM, as a power unit supplier with supply starting in 2029.

GM described the aim as a "full works" team.

The team's own releases describe it as backed by TWG Motorsports and General Motors and give no equity split, so I can't tell you who owns what.

That gap is the point.

The part of this project with the longest runway and the most strategic value is an engine company with a car manufacturer attached to it.

A new investor in the team would be stepping into a structure where GM's plans, not the team's results, set the ceiling.

That's my read.

THE PEREZ CONTRACT IN CONTEXT

Sergio Perez's contract extension with Cadillac, which runs through at least 2029, is reportedly worth more than $100 million over three years.

Ahead of his home Grand Prix in Mexico, Cadillac announced that Perez will stay with the F1 team until at least 2029.

He says it will be his last deal.

"I am clear that these last three years will be my last contract," he said, via Reuters.

Perez doesn't see himself in the sport for much longer.

It is not just the age factor, but the time it is taking from his family life is too much, especially with the Cadillac project, where he has to spend a larger amount of time.

HOW MUCH PEREZ IS REPORTEDLY EARNING

Perez has re-signed with the team even though it is not doing well on track at the moment.

But the reported money is huge, and it would put him just behind Max Verstappen, Lewis Hamilton, Charles Leclerc, George Russell and Lando Norris on the F1 pay list.

ESPN reported, according to Sopitas, that Perez stands to earn in excess of $100 million for the three-year period, including bonuses.

That is over $30 million each year, though the figure isn't official.

This puts the Mexican in a good position in what is supposed to be his last few F1 seasons.

WHY PEREZ SEES THIS AS HIS FINAL F1 DEAL

"I'm really enjoying working with this team, with this project starting from zero," said Perez.

"It's a massive challenge that I'm facing."

"I've never been part of something new."

"Normally, when you come to a team, everything is structured, and the driver can influence very little in the team organization."

"Here, I feel like there is so much I can do other than just driving as fast as possible."

"Having full support from GM and TWG, I really believe that this is the right place for me."

"This is where I want to end my career on a high with the project."

"That's why I feel like I've got this final period of my career that I want to do the maximum with them."

WHO WILL BE HIS TEAMMATE, AND WILL CADILLAC HAVE A NEW OWNER?

While Perez is sorted, the second seat is still up for grabs even though Valtteri Bottas seemingly signed a multi-year deal.

Cadillac tried to get Colton Herta his F1 super license in Mexico, but he was still short by one point.

He will get the chance to reach 40 points this weekend in Brazil when he drives in FP1 in Perez's car.

The American is not the only one in the running, with the likes of Frederik Vesti, Liam Lawson and Esteban Ocon also rumored to be in the frame.

Bottas had a horror crash in Mexico and has urged the team to improve reliability.

THE SALE RUMOR ITSELF

At the Sao Paulo GP, Sergio Perez was questioned on whether a majority stake at Cadillac is indeed up for sale.

He addressed the question directly, though the full content of his answer was not detailed in the source material available.

The Sky Sports report from November 5, 2026, confirms the question was put to him.

No confirmation of any sale process has come from TWG, GM or the team itself.

This means the rumor remains exactly that: a rumor.

But the fact that Perez was asked about it publicly suggests the chatter has reached a level where even the drivers can't avoid it.

WHAT A SALE WOULD ACTUALLY BUY

If the team is for sale, or if a minority stake is being shopped, the buyer would be purchasing a long-term bet.

The grid slot itself has value simply because there are only 20 of them in Formula 1.

New teams have to pay a $200 million anti-dilution fee just to enter, and that figure rises each year.

The factories in Silverstone, the Indianapolis area and Charlotte represent a physical infrastructure that took years and millions to build.

But the crown jewel is the engine program.

GM Performance Power Units LLC is a separate legal entity approved by the FIA to supply power units starting in 2029.

That approval is not easy to get.

The FIA's power unit regulations are complex, and becoming a registered supplier requires technical capability, financial guarantees and a long-term commitment.

GM has all of those.

A buyer who gets into the team now gets a seat at the table when GM's engine program matures.

They get exposure to General Motors' automotive technology without having to own a car company.

They get a piece of what could become a full works team in the world's most watched motorsport series.

THE 2029 TIMELINE

2029 is three years away.

In Formula 1 terms, that is one full regulatory cycle.

The current power unit regulations run through at least 2026, with new rules coming for 2026 and beyond.

GM's engine will enter under whatever regulations are in place at that time.

The company has time to develop, test and homologate its power unit before the 2029 season.

That gives the team three years to build its infrastructure, hire staff and prepare for the transition away from Ferrari power.

During those three years, the team will continue to score whatever points it can with Ferrari engines and its current driver lineup.

But the real value will accumulate in the background, in the engine program that doesn't appear on any timing screen.

THE INVESTOR CALCULUS

For a potential investor, the math is unusual.

Most F1 team valuations are based on performance, prize money, sponsorship revenue and brand value.