What’s next if GM and Andretti break up?

Michael Andretti has retired from day-to-day management of Andretti Global, the racing team he has led since 2002. However, recent rumors suggest that Cadillac is still interested in joining Formula 1.

The rumor leaves many unanswered questions about the future of Andretti Global, as well as its aspirations in Formula 1 – and today we take a look at what this could mean for the antitrust investigation currently underway by the US Department of Justice.

If Andretti and Cadillac go their separate ways, what will happen to the antitrust investigation?

In early May, former Formula 1 world champion Mario Andretti visited Congress in Washington, D.C., after which a group of 12 lawmakers sent a letter to Liberty Media’s Greg Maffei demanding answers as to why Andretti Global was denied entry into the world of Formula 1.

The letter alleged that Formula 1 and Liberty Media had engaged in anti-competitive behavior in direct violation of the Sherman Antitrust Act of 1890. The letter requested additional information from Liberty about its decision to reject the Andretti Global team’s proposal to F1 and suggested that the team’s rejection was a direct result of the series’ desire to protect the interests of current European teams.

In August 2024, Greg Maffei confirmed to investors that the U.S. Department of Justice was, in fact, investigating Liberty Media and that Liberty had fully cooperated with the information request.

However, with the news that Michael Andretti will be stepping down as head of Andretti Global at the end of September, countless questions have arisen about the team’s future – both in the world of motorsport and in the context of an antitrust investigation.

More about Cadillac and Andretti:

👉Cadillac without Andretti? F1 rumor suggests another reason for Michael Andretti’s departure

👉 Revealed: Who are the 12 members of US Congress questioning Andretti’s rejected F1 bid?

As PlanetF1.com wrote at the time, the 12 congressmen who signed the initial letter to Greg Maffei were a diverse group of politicians, both Democrats and Republicans, representing regions of Michigan, North Carolina, Indiana, Texas and Florida.

Most of the congressmen involved in the letter are actively involved in committees aimed at improving transportation and infrastructure, while almost all of them represent the district where General Motors plants are located.

This is crucial. While Congress’s May 1 letter addresses concerns about F1 preventing two American companies (GM and Andretti) from competing on the international battlefield, the greatest concerns seemed to center around GM.

In fact, the second paragraph of the letter reads: “This partnership, which includes GM and the thousands of GM employees we represent, will demonstrate unique American engineering and design skills, including the production of the only American-built and designed engine (powerplant) in Formula One.”

The letter also points out that FOM’s rejection seems conspicuous because the organization represents “a set of European Formula One racing teams, many of which are affiliated with foreign automakers that directly compete with U.S. automotive companies such as GM.” .

In three questions presented to Maffei, 12 congressmen ask how denying the existence of “American companies” such as Andretti Global and GM can be legal if it benefits “European racing teams and their foreign car manufacturing affiliates?”

It all comes down to General Motors.

There is a good reason for this. A study by Oxford Economics found that GM “directly contributed more than $39.2 billion to U.S. gross domestic product in 2022, accounting for a quarter of all GDP generated by U.S. automakers.” What’s more, GM itself boasts a larger economic footprint than “13 U.S. states combined.”

Moreover, in 2022, GM employees represented 10% of the total U.S. automotive workforce.

And this is the economic effect. GM also regularly lobbies members of Congress and makes large donations to candidates who support public policies consistent with GM’s goals as a company. GM lobbyists would have a strong incentive to forge strong partnerships with U.S. politicians, including perhaps some of the 12 signatories of the first letter to Maffei.

When it comes to opening an antitrust investigation against Liberty, GM would be able to make a much stronger case that F1’s denial harmed its business than Andretti did – especially as Cadillac continues its European expansion with electric vehicles like the Lyriq and Celestiq.

Michael Andretti’s presence at Andretti Global appeared to be one of the biggest obstacles preventing the team from gaining approval to join Formula One. In their refusal letter, Formula One management stated that they were interested in Cadillac joining F1 as a works team or power unit manufacturer, but believed that Andretti himself failed to provide value to F1.

Furthermore, Greg Maffei allegedly told Mario Andretti that he would personally ensure that Michael Andretti was never allowed into F1.

With Michael Andretti stepping back from the day-to-day running of Andretti Global, team co-owner Dan Towriss will take on a more active role. Towriss is CEO and president of Group1001, an Indianapolis-based insurance group valued at approximately $39 billion.

Towriss is therefore financing Andretti’s expansion into IndyCar, IMSA and Formula 1. There are rumors that Cadillac will be interested in working with Towriss in the future, as it would be able to finance an F1 program without Cadillac having to invest huge capital to do so.

As a result, the Justice Department’s antitrust investigation will likely continue because, ultimately, lawmakers encouraging the investigation were primarily concerned about the impact that rejecting the FOM decision would have on Cadillac and General Motors.

With Michael Andretti sidelined, it’s also possible that the Justice Department, FOM and Cadillac would more easily agree on a set of terms under which the GM brand would participate in F1, albeit with less of Andretti’s influence.

The situation regarding Andretti Global and Cadillac continues to change, which makes it difficult to predict with certainty what will happen in the future. One thing seems certain, however: the relationship between Andretti, Cadillac, Formula 1 and the US government is likely to become even more complex.

Read further: Andretti Global and Group 1001: How race sponsorship became team-owned