Peace breaks out after FIA bow to teams

THE BIGGEST names in F1 will take their places on the grid next year after governing body the FIA, and their embattled president Max Mosley, caved in to pressure from rebel teams’ group FOTA yesterday.

The bitter war that has divided the sport was ended when the FIA agreed to scrap controversial plans for a budget cap, while Mosley himself announced he would stand down when his term expires in October.

Eight teams, including Ferrari, Lewis Hamilton’s McLaren and championship leaders Brawn GP, had threatened to form a breakaway competition if their demands were not met. Having won a battle of wills with Mosley, FOTA will today confirm its commitment to F1 until 2012. The 10 existing teams will be joined next year by three new outfits: Campos Meta, Manor Grand Prix and Team US F1.

Peace was achieved after crisis talks on Tuesday night and Wednesday morning between Mosley, F1 commercial rights-holder Bernie Ecclestone and FOTA ringleader Luca di Montezemolo, who is also president of Ferrari.

Mosley, 69, had previously insisted a voluntary £40m per team budget cap would be introduced from 2010, in a bid to attract new teams. Instead, teams have committed to reduce costs on their own terms.

“There will be no split, there will be one F1 championship,” said Mosley, who played down the notion he had lost the fight. “If they’re happy with what they (FOTA) have got, fine, I’ve won what I wanted.”

FOTA will also agree to be ruled by the FIA, although what that amounts to, given it has forced the governing body’s hand – and seen off the long-serving Mosley – remains to be seen.

Mosley’s nemesis Di Montezemolo was gracious in victory, saying: “He Mosley has done a very good fix of the problem. When you have reached an agreement, everyone has to help in the same way.”