Ferrari defends using its F1 rules veto over engine prices

The FIA wants to introduce a budget engine as a viable alternative to run alongside the 1.6-litre V6 turbo engines which were introduced at the start of 2014.

It emerged that Ferrari used its right of veto at the last Strategy Group meeting when it was suggested Mercedes, Ferrari and Renault should reduce the amount they charge customers.

But Arrivabene said it is unreasonable to ask the manufacturers to lower their prices after they have already committed the finances for development.

"We just exercised our commercial right as a powertrain manufacturer," said Arrivabene on Ferrari's use of its veto.

"If someone is asking you to produce a specification, you produce that specification.

"If then someone says 'OK, we want you to reduce the price', what are we going to do?

"It's not a position against the other teams, it's a position defending commercial principle. We're open to find any other solution.

"If you are a public company as we are or a company as Mercedes is, you have research and development costs which is something you have to recover.

"I don't know any commercial entity giving produce out for free or at cost. This is a the principle.

"We are not applying the veto at every single meeting. If we do it, we think a lot about it.

"We do it if in our opinion it is necessary to do it. The last one was applied by [ex-Ferrari boss] Jean Todt many years ago."

When asked for his opinion on Ferrari's decision to use its veto, Mercedes team principal Toto Wolff said he understood the Scuderia's standpoint.

"This is a controversial topic and as many things, black and white is not the answer," said Wolff.

"There is a set of rules which were implemented in F1 two years ago.

"We started developing those engines three, four, five years ago based on that set of rules.

"You have to calculate how much you can charge for those engines, how much [money] you can recover for those engines.

"It is difficult as a commercial entity in a situation where a price is being imposed.

"I understand Ferrari's standpoint and also understand that it's a difficult situation for some of smaller teams.

"We will remain committed to cost reduction."