GPWC Appoints Consultants

GPWC Holdings, which groups the major Formula One carmakers, has appointed consultants to prepare the ground for the introduction of a rival grand prix series in 2008.

In a statement on Tuesday, GPWC said International Sports and Entertainment AG would "start building immediately the operational and commercial structure for a new open-wheel motor racing series, to begin no later than 2008".

GPWC, which groups BMW, Mercedes, Ferrari and Renault, said its series would "eliminate weaknesses" in Formula One and support the interests of the public, teams and circuit owners.

The carmakers are unhappy with the current division of Formula One's commercial rights, held by the SLEC holding company set up by the sport's supremo Bernie Ecclestone and controlled by banks.

Teams are bound by the existing "Concorde Agreement" until the end of 2007. Carmakers have been demanding a far greater share of revenues before that date and broke off negotiations with SLEC in April.

"We have been more than patient with the current management and governance of Formula One, but recent developments have underlined the need for a structure that guarantees a stable and prosperous future of the sport," said GPWC chairman Juergen Hubbert in a statement.

Ford announced in mid-September it was pulling its Jaguar team and Cosworth engine maker out of Formula One at the end of the season because it could not make a compelling business case to continue. GPWC said Ford had passed on its shareholding to the other four stakeholders.

"GPWC will continue to seek input from Ford, as well as from the other major car manufacturers as it develops the new series," the statement said.

The 2004 season finished in Brazil at the weekend, with Ferrari winning the team title and their number one driver, Germany's Michael Schumacher, retaining the drivers' title.