PARIS - Formula One's ruling body FIA moved on Tuesday to allay Ferrari's fears that they were going to impose standardised engines on all the stables for the 2010 season.

The Ferrari board had threatened on Monday to pull out of the sport should such measures be implemented but FIA insisted in a statement that this was not the case.

"It seems the Ferrari Board were misinformed," read the statement. "The FIA has offered the teams three options, one of which is the so-called standard engine, and another that the manufacturers should jointly guarantee to supply power trains to the independent teams for less than 5million euros (S$9.39 million) per season."

While FIA complimented Ferrari on their commercial success they added that in order for the championship to exist as it did, the poorer teams needed help. "The FIA is delighted by Ferrari's financial success and hopes this will be maintained. However a number of teams find themselves facing costs which greatly exceed income. This is not sustainable.

"It is now for the manufacturers to agree one of the three FIA options or themselves produce concrete proposals to reduce costs to a sustainable level. "If neither happens, the FIA will take whatever measures prove necessary to preserve a credible world championship for both drivers and constructors."

Formula One has seen many teams taken over by car-makers in recent years with Renault, BMW, Toyota and Honda joining Ferrari and Mercedes-Benz in using the sport as a showcase for their brands and cars.

Ferrari, in a statement released following a board meeting on Monday, said they "fully agreed with the need for a substantial and necessary reduction of costs".

But the Italian firm said it had "major reservations" over any proposals that would lead to teams using the same engines: "... it would deprive Formula One of its whole reason for existing, which is based on competition and technological development".

The statement added: "It is thanks to these elements that Ferrari has been a continual and integral part of Formula One since 1950.

"If these elements were to become obsolete, our Administrative Council (board) reserves the right, after consultation with its partners, to evaluate whether we remain committed to the discipline (of Formula One)."

Following the FIA calls last week Formula One supremo Bernie Ecclestone played down fears that major manufacturers would quit the sport over the standard engine issue.

Ecclestone said he "can't see any reason" why car-makers might leave over the plans, which he said would help them save money as the global economy stalls.

"I don't see why they should leave. We are saving them an awful lot of money, I hope. I don't see why they should," he said.

"Why should someone pull out because they are going to save a lot of money? All the technical things will still be there so they can show all their talents.

"What we want is to reduce the necessity to spend to be competitive. That is the simplest thing."

See also:
Ferrari threaten to walk out