Red Bull are expected to announce imminently that Sergio Perez has lost his seat. This follows a period of negotiations with the Mexican driver at the end of the F1 season.
Liam Lawson will replace Perez, graduating from junior team RB. Red Bull had initially announced that they would retain the same line-up for 2025 after extending the 34-year-old’s deal.
But his results were so poor that his position became untenable. In the last five rounds, when he needed to produce a big performance to change the narrative, he scored just one point.
According to ESPN, Red Bull won’t have to rip up Perez’s contract. That’s because, under their deals, a driver is an employee rather than a racer.
That means Perez can take on an ambassadorial role without the terms of that deal being breached. Negotiations have focused on what that position would look like.
It’s not guaranteed that the six-time race-winner will remain with the company. And it’s also unclear whether he views the Abu Dhabi GP as his final race in F1.
Sergio Perez could return to Formula 1 with Cadillac after expected Red Bull axe
The timing of Perez’s impending release means he won’t be able to race another F1 team in 2025. Isack Hadjar is set to race for RB, so he won’t have the safety net of the junior team.
In theory, he could race in another series next year, though again desirable seats will be limited. He would also be an ideal reserve driver given his vast experience.
READ MORE: Red Bull driver Sergio Perez’s life outside F1 from net worth to nickname: £44bn manufacturer could give Sergio Perez an ‘immediate route back’ to F1 if he loses Red Bull seat
Perez’s stock will be low among most of the current F1 teams, which could be a barrier to a 2026 return. But ESPN’s report points out that a new outfit – Cadillac – will join the field in just over a year’s time.
Cadillac could offer Perez an ‘immediate route back’ into F1. They’re likely to start near the back of the field, though their newly signed Ferrari power unit deal will aid their cause.
How General Motors valuation compares to Ferrari
Cadillac are a subsidiary of General Motors, currently valued at £44bn. Ferrari, already established as an F1 giant, are also listed on the stock market, with a significantly higher market capitalisation of £66m.
Still, the prestige of the Cadillac brand will no doubt be attractive to potential drivers. More importantly, they know that GM are building an engine for 2028, effectively forming their own works team.
Cadillac are keen on Colton Herta, the IndyCar star, because they want to sign an American driver. Signing Herta would be a risk, but they can offset it by pairing him with a proven veteran.
Max Verstappen has called Perez an excellent teammate, having benefitted from his self-sacrificial mentality. With 281 race starts, he ranks eighth all-time, just behind Sebastian Vettel.
