F1 Agrees To Cost-cutting Package

Following a long-running discussion about funding, F1 teams and the International Automobile Federation have agreed to cost-cutting measures for the next two seasons.

Details of the package will be released after it has been approved by the FIA’s World Motor Sport Council.

FIA boss Max Mosley had wanted the teams to use a standard engine and gearbox from 2010 to help cut their costs. But the Formula One Teams Association was against this motion, though it would cost about 10% of what teams have spent on engines in recent years.

The engine supplied by Cosworth and gearbox from Xtrac and Ricardo would cost each team an initial payment of £1.68m followed by £5.4m per season over the three years of the agreement.

In the past, Ferrari and Toyota have threatened to quit the sport if a standard engine was introduced. However, all the teams have claimed to being committed to decreasing operating costs.