http://news.bbc.co.uk/sport1/hi/motorsport/formula_one/8108488.stm 

Formula One has been thrown into chaos after the Formula One Teams Association (Fota) carried out its threat to set up a rival championship in 2010.

Eight of F1's major teams have been frustrated by deadlocked talks with world motorsport boss Max Mosley over his controversial budget cap proposals.

"The teams have declined to alter their original conditional entries to the 2010 F1 Championship," said the teams.

"We've no alternative than to commence preparation for a new championship."

Mosley was insistent on introducing a voluntary £40m budget cap for teams to curtail a "financial arms race" in F1.

But Fota refused to agree to his conditions, prompting championship leader Brawn GP, Ferrari, McLaren, Renault, Toyota, BMW Sauber, Red Bull Racing and Toro Rosso to take their drastic action.

They announced their decision following a four-hour meeting on Thursday night ahead of this weekend's British Grand Prix at Silverstone.

"Since the formation of Fota last September the teams have worked together and sought to engage the FIA and commercial rights holder (Bernie Ecclestone), to develop and improve the sport," read a Fota statement.

"Unprecedented worldwide financial turmoil has inevitably placed great challenges before the F1 community.

"Fota is proud that it has achieved the most substantial measures to reduce costs in the history of our sport.

"In particular, the manufacturer teams have provided assistance to the independent teams, a number of which would probably not be in the sport today without the Fota initiatives.

"The Fota teams have further agreed upon a substantial voluntary cost reduction that provides a sustainable model for the future.

"Following these efforts, all the teams have confirmed to the FIA and the commercial rights holder that they are willing to commit until the end of 2012.

- See link for the rest...

Pretty bad news Imo, not looking good..

No-one care about F1 then??

Not anymore.

F1 is dead! Long live FOTA!

That.. who cares about slower cars, budget caps, unified engine etc... We want the best of the best!! GO! FOTA!!!

^ Who says it'll be slower? Was slower 10 years ago and just (if not more exciting) There were already 3 new teams interested in joining because of the £40m cap. More cars = more racing competativeness, it'll show a drivers skill is more cars are similar and won't give an advantage for whoever has the best car.

But then that is the point, if you are capable of bulding the best car, you deserve to be out in front. Brawn didn't exist last year, now they are winning every race, not through money I don't think because McClaren and Ferrari has that and look at them but skilled engineers.

It would be like saying to Chelsea that you are not allowed to have expensive players and splash out with their billions or value your team above £50 million even though they can and should be allowed to have that much.

Brawn = Honda.. Honda build the car last year when they decided not to put any more effort in the 2008 season and concentrate at this season.. Even now Honda is paying the pay checks for the Brawn GP members cause it's cheaper then buying of all their contracts...

And a refuelling ban would mean slower cars... and I'm not even mentioning the rule that all engines has to be at the same level... so buy the Crosworth engine or make your own with the blueprints of the Crosworth engine... yuk..

Gooooo FOTA!!

I always figured Nascar would be the entity that would end formula 1

^ Nah Nascar will never be popular outside of the US.

And go FOTA, stupid rules ruining F1.

On one hand I'm sad to hear about this because it will probably mean the end of my local race in Melbourne, however I am excited at the prospect of a championship without the constant rule changes every year and that idiot Mosley dictating from his high horse.

Hopefully Australia will host a race in the new and improved FOTA F1.