Cost reduction comes to Formula One

At a meeting of The Formula One Teams' Association (FOTA) on 8 January, cost cutting measures were agreed. The meeting, held at Heathrow, saw all the Members unanimously agree a number of important principles and express support the process now established within FOTA. The teams detailed and signed a comprehensive Aerodynamic Test Restrictions Agreement, effective in 2009. The also agreed that they would develop and freeze low cost transmissions for the 2010/12 seasons which would have a six race life, priced at €1.5 million per season per team. FOTA also reaffirmed its commitment to a €5 million engine supply from 2010 for independent teams, who have expressed their agreement with and support for this arrangement. The FOTA Technical Regulations Working Group will now conclude the elimination of expensive materials and identify further opportunities to reduce the cost of components and systems which do not deliver performance differentiation. All of the Teams are committed to working together in a rational and systematic manner, within the framework of FOTA to effectively reduce the costs inherent to Formula One. F1 teams are prominent users of high technology manufacturing plant in their quest for speed. See links below.