FIA confirms budget F1 engine after Ferrari veto on powertrain plan

The intention to introduce the budget engine has been confirmed by the FIA after the plan was revealed during the United States Grand Prix weekend.

Motorsport's governing body has been frustrated in its attempts to impose cost cuts, and now sees a cheaper engine as a viable alternative to run alongside the 1.6-litre V6 turbo-charged systems introduced at the start of last year.

The FIA has revealed Ferrari used its right of veto after it and Formula One Management "suggested the principle of setting a maximum price for engine and gearbox for client teams" at the last Strategy Group meeting.

At present it is understood customers of engine manufacturers Mercedes, Ferrari and Renault pay around €20million per season for a power-unit supply.

It had been suggested the trio should charge less than half that in the interests of keeping costs as low as possible, only for Ferrari to say no.

A FIA statement claims "these measures were put to the vote and adopted with a large majority.

"However, Ferrari SpA decided to go against this and exercise the right of veto long recognised under agreements governing F1.

"In the interest of the championship, the FIA has decided not to legally challenge Ferrari SpA's use of its right of veto."

The FIA has confirmed it is to "initiate a consultation with all stakeholders regarding the possible introduction of a client engine, which will be available as of 2017.

"Following this consultation a call for tenders for this client engine, the cost of which would be much lower than the current power unit, could be undertaken," said the FIA statement.

"Supported by FOM, the FIA will continue in its efforts to ensure the sustained long-term development of the championship and look for solutions enabling it to achieve this.

"It asks all of the teams to make a positive contribution to the success of this approach through proposals and initiatives in the interest of the Championship and its continuation over the long term."

The prospect of a different engine still has numerous hurdles to clear, but if tenders are eventually sought it could see the likes of Cosworth putting in a bid.