Formula 1 announced Monday that it has approved the entry of GM and Cadillac as a new team on the grid, bringing a storied American car maker into the pinnacle of motorsport.

The announcement, which is part of an application initiated by racing team Andretti Global, shakes up the F1 world and could provide a boost to the fast-growing U.S. market. It comes two days after the Las Vegas Grand Prix.

F1 said in a statement that it “reached an agreement in principle with General Motors (GM) to support bringing GM/Cadillac as the eleventh team to the Formula 1 grid in 2026.”

The much-anticipated decision follows a year-long saga marked by drama and bitter tensions within F1 after Andretti Global applied to join the grid and gained the approval of the sport’s governing body FIA — only to get rejected by the Liberty Media-owned commercial side of F1, which questioned whether Andretti would bring sufficient value to the sport or be competitive.

But the added promise from GM to become a “works” team — building both a car and a power unit — led to a breakthrough.

“Formula 1 has maintained a dialogue with General Motors, and its partners at TWG Global,” — which now controls Andretti Global — “regarding the viability of an entry following the commercial assessment and decision made by Formula 1 in January 2024,” F1 said in a statement. “Over the course of this year, they have achieved operational milestones and made clear their commitment to brand the eleventh team GM/Cadillac, and that GM will enter as an engine supplier at a later time. Formula 1 is therefore pleased to move forward with this application process and will provide further updates in due course.”

In a statement, GM said it will build its own power unit “by the end of the decade,” without specifying a year.

“F1 demands boundary-pushing innovation and excellence. It’s an honor for General Motors and Cadillac to join the world’s premier racing series, and we’re committed to competing with passion and integrity to elevate the sport for race fans around the world,” GM President Mark Reuss said. “This is a global stage for us to demonstrate GM’s engineering expertise and technology leadership at an entirely new level.”

Mario Andretti, a former F1 champion and the patriarch of the Andretti racing dynasty, will serve as a director on the team’s board.

“My first love was Formula 1 and now — 70 years later — the F1 paddock is still my happy place. I’m absolutely thrilled with Cadillac, Formula 1, Mark Walter, and Dan Towriss,” Andretti said in a statement. “To still be involved at this stage of my life — I have to pinch myself to make sure I’m not dreaming.”

Last spring, Andretti paid a visit to Washington, D.C., at the invitation of lawmakers, and the story became political. Within a few months, the Justice Department began investigating Liberty Media for potential antitrust violations amid allegations that it shut out a U.S. team to protect the largely European teams from competition.

That probe could fizzle as a result of this move.

“If Andretti and GM have worked out a deal to get onto the Formula 1 grid, federal enforcers will probably be able to close their file and focus on other things,” said Daniel Francis, a professor at NYU School of Law and an antitrust expert. “Sometimes the best investigations are the ones that resolve themselves: consumers benefit and the enforcers can deploy their resources elsewhere.”

Andretti’s son, Michael Andretti, who helmed the team’s initial application to join F1, has been sidelined under the new effort, with investor Dan Towriss taking the reins of Andretti Global and overseeing it.

It will be the first time since 2016 that F1 has had more than 10 teams on the grid. One of those existing teams, Haas F1, is owned by American Gene Haas with headquarters in North Carolina. But the team uses a Ferrari engine and is lesser known to American fans.

There are two drivers per team, and the addition of the GM-Cadillac seats on the grid will be a welcome development for young drivers. Many have hit roadblocks trying to break into a sport, despite showcasing their talent, as older veterans are staying longer and those who bring sponsorship money gain a leg up.

“From a young drivers point of view, I think they would definitely vote to have another team,” RB driver Liam Lawson, who is looking to secure his seat for next season, said in an interview.

Some veteran drivers could also be interested in a seat.

On Saturday, after the Las Vegas race, NBC News asked outgoing Sauber driver Valtteri Bottas, a 10-time race winner, whether he might be interested in a 2026 seat at Cadillac F1.

“Yes. I might,” Bottas replied.

The move sets up a clash of two American car giants, GM and Ford, in Formula 1. Ford is partnering with Red Bull to build the team’s power unit starting in 2026.

As rumors about the potential deal circulated, it was the talk of the paddock at the Las Vegas Grand Prix.

“Ford versus GM could be pretty sexy,” Red Bull team principal Christian Horner said on Sky Sports F1.