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Cadillac Unleashes Controversial FIA Budget Cap Loophole to Build F1 Dream Team for 2026

Virgilio Machado by Virgilio Machado
October 6, 2025
in Motorsports
Reading Time: 2 mins read
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Cadillac Unleashes Controversial FIA Budget Cap Loophole to Build F1 Dream Team for 2026

Cadillac Racing: The Dark Horse of F1 Unveils Budget-Cap Loophole!

In a shocking twist in the high-octane world of Formula 1, the Cadillac F1 team has reportedly uncovered a loophole in the FIA budget cap regulations, potentially setting the stage for a seismic shift in the competitive landscape as they gear up for the 2026 season. This revelation, reported by Sky Sports pundit Ted Kravitz, has ignited a firestorm of speculation and intrigue among fans and competitors alike.

Since the implementation of the budget cap in 2021, all teams have been strictly limited in their spending on crucial aspects like car upgrades, staffing, and logistical operations. However, one glaring omission from these regulations has emerged: driver salaries. This loophole has already seen teams like Red Bull face severe penalties for overspending, including hefty fines and reduced wind tunnel time. Yet, it appears Cadillac is poised to exploit this gap in the rules to construct a formidable team of experts ahead of their debut.

With renowned figures like team principal Graeme Lowdon and star drivers Valtteri Bottas, Sergio Perez, and Colton Herta already in the fold, the American outfit is not holding back in its pursuit of excellence. Kravitz, during his commentary at the Singapore Grand Prix, revealed the strategy behind Cadillac’s aggressive recruitment: “Steve Nielsen had a couple of interesting things to say yesterday… He was talking about losing a lot of staff to Cadillac and… they can offer people some quite good packages financially.”

The crux of the matter? Cadillac is currently not spending on racing activities, allowing them to lure top-tier talent without breaching the budget cap. As they are not yet on the grid, the team can allocate funds to attract skilled personnel, giving them a head start as they prepare for their entry into the fiercely competitive world of F1.

But what does the future hold for Cadillac? Despite assembling a roster that boasts an impressive 16 Grand Prix victories between Perez and Bottas, Lowdon has tempered expectations, stating that they might find themselves at the bottom of the standings when the engines roar to life in 2026. With a cutting-edge facility near Silverstone and a long-term vision in place, they are preparing for a challenging journey ahead, but their sights are firmly set on 2028 when they will partner with General Motors for power unit development.

For the first two years, Cadillac will rely on Ferrari power units, which could provide a crucial advantage as they acclimate to the F1 landscape. Lowdon has urged patience among the board of directors, signaling that while immediate results may be elusive, a strategic foundation is being laid for a brighter future.

As the countdown to Cadillac’s F1 debut begins, fans and analysts alike are left wondering: will they rise from the ashes of obscurity to challenge the established giants of the sport? Only time will tell, but one thing is for sure—Cadillac is ready to shake things up in Formula 1!

Tags: 1958-formula-1-seasoncadillac-racing-2Colton HertaSergio PérezValtteri Bottas
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