F1 manufacturers set up new company

The new company, GPWC Holding BV, is in the process of being registered in Holland. Fiat boss Paolo Cantarella will be in charge, with Jürgen Hubbert of DaimlerChrysler acting as vice-chairman. The rest of the board will consist of Patrick Faure (Renault), Burkard Goeschel (BMW) and Wolfgang Reitzle (Ford).

Cantarella also leads the European Carmakers' Association, ACEA, which remains in negotiation with German media company Kirch Gruppe, the current majority shareholder of the Formula 1 World Championship's commercial rights. The manufacturers want more control over the revenue produced by F1, and to protect their multi-million pound investments in the category. They are threatening the rival series in case Kirch does not agree.

"We have struggled to get a deal with Kirch and it has not been forthcoming," said an insider. "We have the cars, the teams and we can certainly get contracts with the 14 or 15 tracks we need. Sorting out new media contracts might be difficult, but there is plenty of time to do it."

Kirch owns 75 percent of Bernie Ecclestone's F1 holding company SLEC, which has a long-term deal to the commercial rights to F1. Kirch also owns a number of pay television channels, and the manufacturers are concerned that F1 will lose its current free-to-air television coverage.

The manufacturers have met with the current F1 teams, including those who are not aligned with the corporate giants, and invited them to participate in the new series, which is planned to start after the current Concorde Agreement runs out in 2007.