ANALYSIS: Why Cadillac moved quickly to secure Perez’s F1 future

Sergio Perez is set to remain in Formula 1 for the foreseeable future after signing a multi-year contract extension with Cadillac ahead of his home race in Mexico. F1 Correspondent Lawrence Barretto explains why they have extended their partnership...

While Perez's pace has been difficult to gauge from the final Grand Prix classifications given Cadillac's position towards the back of the pack, the feeling both inside the team and within his camp is that the Mexican is driving at an impressively high level.

Perez returned to Formula 1 this year as part of Cadillac's debut season in the championship and has shown few signs of rust after a year on the sidelines following a difficult split with Red Bull.

The 36-year-old says he is performing at such a high level that he considers himself one of the best drivers in F1 right now. If nothing else, that demonstrates his confidence has returned and his motivation remains high.

Perez knew life would be difficult in Cadillac's early days as the American team find their feet and work to establish themselves as a competitive force in F1. As a result, he has not become downbeat about their results.

Instead, he is determined to push the team forward, drawing on the experience gained from six wins and 39 podiums during his F1 career. That experience has been valued throughout Cadillac during their debut campaign.

There were questions over how Perez would perform following the difficult end to his time with Red Bull, so his initial multi-year Cadillac deal included options over their future together from 2027 onwards.

But Cadillac quickly felt they had made the right call in bringing Perez back to the sport. The Mexican has consistently got the best out of the package, while the quality of his feedback has helped the team make progress with development.

For his part, Perez rediscovered just how much he enjoys competing in F1, even with Cadillac towards the back for now, while seeing first-hand General Motors' commitment and investment in making the project a success.

It therefore made sense for both sides to discuss a new contract rather than simply triggering an option for a second season.

This could prove to be Perez's final chapter in Formula 1, following stints with Sauber, McLaren, Force India/Racing Point and Red Bull, but it is unlikely to be a short one if he continues delivering at his current level.

It is understood the two sides have agreed a multi-year extension that could keep Perez with Cadillac as he approaches his 40s.

The deal rewards Perez for his performances since returning to F1 and reconfirms Cadillac's belief in his abilities. It also allows him to focus on the job at hand without uncertainty over his future.

The commitment gives Cadillac stability on one side of the garage with a proven race winner who is still operating at a high level. Perez's willingness to commit his future to the project also underlines his belief in what the team can achieve.

The deal is believed to have come together quickly and was completed in time to be announced ahead of Perez's home race in Mexico, where he will make his 300th F1 start.