Carmakers Not Interested in More Kirch Talks

Leading carmakers aiming to set up their own Formula One racing series have no interest in more talks with rights holders the Kirch Group, a top executive of German auto group DaimlerChrysler was reported as saying on Thursday.

The carmakers moved to create a rival organisation last year after Kirch, the German media group, acquired a majority stake in the marketing organisation behind the lucrative Formula One racing events, sparking fears races might be shown only on Kirch's pay TV operation.

Kirch secured 75 percent of the shares in Formula One holding company SLEC, who paid FIA $313.6 million for the commercial rights to Formula One for the next 100 years.

"The five manufacturers involved in Formula One, BMW, DaimlerChrysler, Fiat, Ford and Renault received proposals for cooperation with the Formula One marketing firm SLEC some time ago which, after comprehensive internal discussions, they considered would not lead to a result," DaimlerChrysler board member Juergen Hubbert told newspaper Frankfurter Allgemeine Zeitung.

He said the manufacturers had made preparations to start a new Formula One series from 2008, when the current agreement with SLEC runs out.

"As a result, there is currently no reason in my view for talks with the Kirch Group," he said.