FIA and FOTA reach landmark agreement

It is believed that a broad agreement was reached between FIA president Max Mosley and FOTA chiefs Luca di Montezemolo and John Howett to introduce drastic cost reductions from next year.

The joint statement read: "Today's meeting in Geneva has produced significant cost savings for 2009 and 2010.

"FOTA are working urgently on further proposals for 2010 and thereafter."

But while the statement did not detail any specific measures, autosport.com understands that four key points were agreed:

- Engine life will be increased from two to three races from 2009

- Manufacturers must be prepared to make 25 engine units available, at a cost of 10 million Euros, to customer teams

- There will be a further meeting between FOTA members in Brazil to determine testing kilometre limits for 2009, and an agreement in principal on the introduction of a standard Kinetic Energy Recovery System (KERS) unit for 2010 or 2011. KERS is believed to remain open for teams to use next season.

- The sport's governing body and FOTA will meet again after the Brazilian Grand Prix to discuss measures to reduce costs related to chassis development and the continuation of the use of customer chassis in the future.

When asked to comment on the agreements, an FIA spokesman said it was "inappropriate to comment at this time", but described the meeting as "very positive and constructive."

One source added that the meeting had "historical" significance because it "was the first time the teams had enjoyed such unanimity" in their discussions over the sport's future direction.