Jan 9 (Reuters) - General Motors has set up an engine company to turn its planned Cadillac Formula One entry into a full works team by the end of the decade, the carmaker said on Thursday.

The Liberty media-owned sport last November announced an agreement in principle for the team, backed by GM and partners TWG Global who also own and operate Andretti Global, to become an 11th entry in 2026.

GM Performance Power Units LLC will be led by Russ O'Blenes, who currently serves as director of the GM Motorsports Propulsion and Performance team.

"In F1, we’re going to demonstrate GM’s engineering and technology capabilities on a global stage, and Russ is the right choice to lead the Power Unit team that will make it happen," said GM President Mark Reuss in a Cadillac statement.

Cadillac said development and testing of a prototype had already started and plans were in place for a dedicated facility for the new company to open in 2026 near the GM technical centre in Charlotte, North Carolina.

The team, who also have a base at Silverstone in England, will use Ferrari engines until the GM engines are ready and approved.

(Reporting by Alan Baldwin in London, editing by Toby Davis)

((alan.baldwin@thomsonreuters.com; +442075427933;))