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F1 governing body proposes sweeping cost cuts  

Formula One’s governing body has proposed radical cost-cutting measures, including the possible use of standard engines from 2010, to help teams survive the global financial storm.

In a letter to the 10 teams ahead of a meeting with International Automobile Federation (FIA) President Max Mosley in Geneva next week, and seen by Reuters on Wednesday, the governing body put forward a five-year plan of action.
“The FIA believes that Formula One costs are unsustainable,” it said.

“Even before current global financial problems, teams were spending far more than their incomes.

“As a result, the independent teams are now dependent on the goodwill of rich individuals, while the manufacturers’ teams depend on massive hand-outs from their parent companies.

“There is now a real danger that in some cases these subsidies will cease,” added the FIA.

“This could result in a reduction in the number of competitors, adding to the two team vacancies we already have and reducing the grid to an unacceptable level.”

The Paris-based body said the sport could only be healthy if a team could race competitively with a budget close to the revenues received from the commercial rights holder.

Honda-backed Super Aguri folded after the Spanish Grand Prix in April while a planned Prodrive team has been shelved.

Former champions Williams, who made a 21.4 million pound ($37.54 million) loss last year and are sponsored by both bailed-out British bank RBS and companies owned by troubled Icelandic retailer Baugur, are now the only team not funded by a manufacturer or a billionaire.

However, the future of even some of the manufacturer teams has begun to look uncertain against a backdrop of factory layoffs, steeply falling share prices and dwindling sales.

Source : http://www.todayszaman.com

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