Ferrari Commit to Formula One Until 2012

In a surprise move, Ferrari have signed an agreement with Bernie Ecclestone and the FIA, committing the Italian squad to Formula One and the Concorde Agreement until the end of 2012.

Announcing the move today, Ferrari said they will be committing to staying in the sport when the current agreement expires at the end of 2007.

Ferrari's commitment to an extension of the Concorde Agreement effectively means the Italian company is deserting the idea of a breakaway series in 2008.

The Grand Prix World Championship, GPWC, had been created by the European manufacturers involved in Formula One to create a new series in which the teams would get a bigger share of the revenues.

"We are very pleased to have reached this agreement with Formula One's commercial rights holder and the oldest team in the Championship," said FIA president Max Mosley. "The agreement is significant because it will ensure the future development of the FIA's most important Championship."

Ferrari, one of four shareholders in GPWC, has been vocal about the need for change in the sport, and the company's president Luca di Montezemolo had made clear the teams were entitled to more revenues.

"It is important and also pleasing that the FIA, which is the governing body and FOM, which represents those who have organised Formula One in these past years and Ferrari, which is the only team to have taken part in the World Championship, without a break, since its inception, have put out a strong message of stability for the future of Formula One," said di Montezemolo today.

"This agreement is in line with what Ferrari had hoped for, for a long time."

Formula One supremo Ecclestone added: "Formula One Management are delighted that this agreement is in place and that the future of Formula One has now been stabilised."