PAE Motorsport was formed at the end of 1998 by Kevin Otway and Stephen Renshaw, operating out of Renshaw's Precision Auto Engineering business in Perth, with John Bowe hired to drive. The team commenced the 1999 season with an ex-Playscape RacingFord Falcon EL, with a Falcon AU debuted at round three. The team was sponsored by Caterpillar.[1][2] Renshaw had previously been associated with Graham Blythman's Perth-based Holden V8 team in 1994.